Author: Amanda Granath

Hesz previously served as CSO for adam&eve and DDB

NEW YORK, Oct. 28, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced the appointment of Alex Hesz to the role of Executive Vice President, Chief Strategy Officer, effective November 1, 2022.

In this newly created position, Hesz will collaborate closely with Omnicom’s leadership team on the company’s strategic priorities and enterprise-level clients.

“I’ve known Alex for years. He has one of the most brilliant minds in our industry and I’ve had the opportunity to see the impact of his work for our clients,” said John Wren, Chairman and CEO, Omnicom. “We are pleased to welcome him back to Omnicom in a critical role that will reinforce innovation and strategic thinking across the organization and elevate how we go to market. He will bring immense value to the organization and the clients we serve.”

Prior to this role, Hesz was Group Chief Strategy Officer for adam&eve, as well as Chief Strategy Officer of DDB Worldwide, working on clients including Google, Volkswagen, Mars, Facebook, Virgin Media, and Unilever.  

Hesz joined adam&eve when the agency was a small startup in London and was core to its growth for a decade, seeing it become London’s largest agency, Cannes Lions’ European Agency of the Decade, Campaign‘s Agency of the Decade, and IPA’s most awarded agency for effectiveness.

“More than ever, large clients are looking for greater integration that connects content and media into more effective and agile solutions,” said Hesz. “I’m excited to join Omnicom’s outstanding leadership team and work across our broad array of agency practices to unlock innovation and growth for clients.”

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

NEW YORK, Oct. 25, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced the appointment of Kathleen Saxton as Chief Marketing Officer, effective January 1. In this new position, Saxton will be responsible for marketing Omnicom’s award-winning capabilities and its omni-channel solutions for global enterprise clients, building on the Company’s success in this area. 

A highly experienced industry leader, Saxton joins from MediaLink, where she served as Managing Director EMEA, responsible for strategic consulting, agency selection, talent advisory, marketing and sales. She is also co-founder of Advertising Week Europe. Previously, she ran her own talent advisory firm, The Lighthouse, for a decade and held marketing positions at Sky Television, Saatchi and PHD.

“Kathleen steps into this role with a deep understanding of the solutions that modern global clients want in order to succeed in a transformed consumer world,” said Daryl Simm, President and Chief Operating Officer of Omnicom Group. “Her proven marketing skills will elevate our incredible agency talent and our connected client solutions that achieve better business results.”

“With its iconic and creative agency networks and future-looking disciplines, Omnicom has established itself as a leader for integrated client solutions,” said Saxton. “I am eager to work alongside an incredible team to orchestrate its vast capabilities to best serve clients.”

Saxton sits on the board of NSPCC Childline and is an active member of WACL (Women in Advertising and Communications Leadership). She is also a mentor for the social mobility charity Speakers For Schools program.

About Omnicom Group Inc.

Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

Revenue of $3,443.4 million, with organic growth of 7.5%

Operating profit of $546.0 million

Operating profit margin of 15.9%

Diluted earnings per share of $1.77

NEW YORK, Oct. 18, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter ended September 30, 2022.

“Omnicom delivered 7.5% organic revenue growth in the quarter with double-digit organic growth in precision marketing, public relations, and commerce & brand consulting, and solid results across our portfolio broadly. Profitability also remained strong, and our experience with challenging economic environments leaves us confident that we can navigate through current business uncertainty,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “One thing remains certain – the path from marketer to consumer is becoming exceedingly complex, and Omnicom has the talent and capabilities to be the trusted advisor to drive success for our clients.”

$ in millions, except per share amounts	Three Months Ended September 30,
	2022	2021
Revenue	$3,443.4	$3,435.0
Operating Profit	546.0	541.6
Operating Profit Margin	15.9%	15.8%
Interest expense, net	29.1	43.7
Net Income(1)	364.5	355.6
Net Income per Share – Diluted(1)	$1.77	$1.65
EBITA(2)	$566.1	$560.3
EBITA Margin(2)	16.4%	16.3%

• (1)

  Net Income and Net Income per Share for Omnicom Group Inc.

• (2)

  See Reconciliations of Non-GAAP Financial Measures

Third Quarter 2022 Results

Revenues
Worldwide revenue growth in the third quarter of 2022 compared to the third quarter of 2021 was led by an increase in revenue from organic growth of $257.7 million, or 7.5%.  Acquisition revenue, net of disposition revenue, was a decrease of $32.7 million, or 1.0%, primarily reflecting the disposition of our businesses in Russia in the first quarter of 2022.  The impact of foreign currency translation was a decrease of $216.6 million, or 6.3%.  Reported total revenue in the third quarter of 2022 increased $8.4 million, or 0.2%.

Organic growth in the third quarter of 2022 compared to the third quarter of 2021 increased across all of our fundamental disciplines, including: 5.9% for Advertising & Media, 16.3% for Precision Marketing, 12.6% for Public Relations, 11.1% for Commerce & Brand Consulting, 5.0% for Healthcare, 3.9% for Execution & Support, and 2.3% for Experiential.

Organic growth in the third quarter of 2022 compared to the third quarter of 2021 increased across our geographic markets as follows: 7.6% for the United States, 11.5% for the United Kingdom, 6.0% for the Euro Markets & Other Europe, 4.4% for Asia Pacific, 13.1% for Latin America, 7.7% for Other North America, and 12.2% for the Middle East & Africa.

Expenses
Operating expenses increased $4.0 million, or 0.1%, to $2,897.4 million compared to the third quarter of 2021. 

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, and third-party service costs.  In total, salary and service costs increased $14.3 million, or 0.6%.  Salary and related costs increased $18.8 million, or 1.1%, due primarily to the increase in organic revenue, an increase in headcount, and an increase in client-related business activities. Third-party service costs decreased $4.5 million, or 0.6%, due primarily to the disposition of our businesses in Russia in the first quarter of 2022, partially offset by an increase in organic revenue.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, decreased $4.5 million, or 1.6%, to $281.0 million, due to lower rent and other occupancy costs, partially offset by an increase in general office expenses resulting from the return of our workforce to the office.

SG&A expenses decreased $8.6 million, or 9.1%, to $86.4 million.

Operating Profit
Operating profit increased $4.4 million, or 0.8%, to $546.0 million compared to the third quarter of 2021.  The related operating profit margin was 15.9% compared to 15.8% for the third quarter of 2021.

Interest Expense, net
Net interest expense in the third quarter of 2022 decreased $14.6 million to $29.1 million compared to the third quarter of 2021.  Interest expense increased $1.3 million to $52.0 million, and interest income increased $15.9 million to $22.9 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 26.1% in the third quarter of 2022 increased from 24.1% in the third quarter of 2021 primarily related to the favorable settlements of uncertain tax positions in certain jurisdictions in the prior year period.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for the third quarter of 2022 increased $8.9 million, or 2.5%, to $364.5 million compared to the third quarter of 2021.  Diluted shares outstanding decreased to 206.3 million, or 4.7%, from 215.4 million.  Diluted net income per share of $1.77 increased $0.12, or 7.3%, from $1.65 per share.

EBITA
EBITA in the third quarter of 2022 increased $5.8 million, or 1.0%, to $566.1 million compared to the third quarter of 2021. The related EBITA margin increased to 16.4% from 16.3%.

Risks and Uncertainties
Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation, rising interest rates and supply-chain disruptions could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness and other developments.

Definitions – Components of Revenue Change
We use certain terms in describing the components of the change in revenue above. 

Foreign exchange rate impact: calculated by translating the current period’s local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue.

Acquisition revenue, net of disposition revenue: Acquisition revenue is calculated as if the acquisition occurred twelve months prior to the acquisition date by aggregating the comparable prior period revenue of acquisitions through the acquisition date. As a result, acquisition revenue excludes the positive or negative difference between our current period revenue subsequent to the acquisition date and the comparable prior period revenue and the positive or negative growth after the acquisition date is attributed to organic growth. Disposition revenue is calculated as if the disposition occurred twelve months prior to the disposition date by aggregating the comparable prior period revenue of disposals through the disposition date. The acquisition revenue and disposition revenue amounts are netted in the description above.

Organic growth: calculated by subtracting the foreign exchange rate impact component and the acquisition revenue, net of disposition revenue component from total revenue growth.

Conference Call
Omnicom will host a conference call to review its financial results on Tuesday, October 18, 2022 at 4:30 p.m. Eastern Time. Participants can listen to the conference call by calling 844-291-6362 (domestic) or 234-720-6995  (international), along with access code 9962421. The call will also be simulcast and archived on our investor relations website.

Corporate Responsibility
At Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website (csr.omnicomgroup.com) for highlights of our progress across the four areas on which we focus: People, Community, Environment and Governance.

About Omnicom Group Inc.
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

Non-GAAP Financial Measures
We use certain non-GAAP financial measures in describing our performance. We use EBITA (defined as earnings before interest, taxes and amortization of intangible assets) and EBITA Margin (defined as EBITA divided by revenue) as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization of intangible assets arising from acquisitions). We believe EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, from time to time, the Company or its representatives have made, or may make, forward-looking statements, orally or in writing. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial position, or otherwise, based on current beliefs of the Company’s management as well as assumptions made by, and information currently available to, the Company’s management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “should,” “would,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: adverse economic conditions, including those caused by the the war in Ukraine; the impact of the COVID-19 pandemic; severe and sustained inflation in countries that comprise our major markets; rising interest rates; supply chain issues affecting the distribution of our clients’ products; international, national or local economic conditions that could adversely affect the Company or its clients; losses on media purchases and production costs incurred on behalf of clients; reductions in client spending, a slowdown in client payments and a deterioration or a disruption in the credit markets; the ability to attract new clients and retain existing clients in the manner anticipated; changes in client advertising, marketing and corporate communications requirements; failure to manage potential conflicts of interest between or among clients; unanticipated changes relating to competitive factors in the advertising, marketing and corporate communications industries; the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its critical accounting estimates and legal proceedings; and the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and regulatory environment. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect the Company’s business, including those described in Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements.

Omnicom Group Inc. Consolidated Statements of Income Three Months Ended September 30 (Unaudited) (In Millions, Except Per Share Data)
	2022	2021
Revenue	$3,443.4	$3,435.0
Operating Expenses:
Salary and service costs	2,476.1	2,461.8
Occupancy and other costs	281.0	285.5
Costs of services	2,757.1	2,747.3
Selling, general and administrative expenses	86.4	95.0
Depreciation and amortization	53.9	51.1
	2,897.4	2,893.4
Operating Profit	546.0	541.6
Interest Expense	52.0	50.7
Interest Income	22.9	7.0
Income Before Income Taxes and Income (Loss) From Equity Method Investments	516.9	497.9
Income Tax Expense	134.7	120.0
Income From Equity Method Investments	1.1	2.2
Net Income	383.3	380.1
Net Income Attributed To Non controlling Interests	18.8	24.5
Net Income – Omnicom Group Inc.	$364.5	$355.6
Net Income Per Share – Omnicom Group Inc.
Basic	$1.78	$1.66
Diluted	$1.77	$1.65
Weighted average shares (in millions)
Basic	205.0	214.0
Diluted	206.3	215.4
Dividends Declared Per Common Share	$0.70	$0.70

Omnicom Group Inc. Detail of Operating Expenses Three Months Ended September 30 (Unaudited) (In Millions)
	2022	2021
Operating Expenses:
Salary and service costs
Salary and related service costs	$1,749.1	$1,730.3
Third-party service costs	727.0	731.5
	2,476.1	2,461.8
Occupancy and other costs	281.0	285.5
Costs of services	2,757.1	2,747.3
Selling, general and administrative expenses	86.4	95.0
Depreciation and amortization	53.9	51.1
Total Operating Expenses	$2.897.4	$2,893.4

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30 (Unaudited) (In Millions)
	2022	2021
Net Income – Omnicom Group Inc.	$364.5	$355.6
Net Income Attributed To Noncontrolling Interests	18.8	24.5
Net Income From Equity Method Investments	383.3	380.1
Income From Equity Method Investme	1.1	2.2
Income Tax Expense	134.7	120.0
Income Before Income Taxes	516.9	497.9
Interest Income	22.9	7.0
Interest Expense	52.0	50.7
Operating Profit	546.0	541.6
Add back: Amortization of intangible assets	20.1	18.7
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	566.1	560.3
Revenue	$3,443.4	$3,435.0
EBITA	$566.1	$560.3
EBITA Margin %	16.4%	16.3%

The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA (defined
as earnings before interest, taxes and amortization of intangible assets) and EBITA Margin (defined as EBITA divided
by revenue) for the periods presented. We use EBITA and EBITA Margin as additional operating performance
measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization
of intangible assets arising from acquisitions). Accordingly, we believe EBITA and EBITA Margin are useful measures
for investors to evaluate the performance of our business.

SOURCE Omnicom Group Inc.

Lennon previously served as President of Critical Mass

NEW YORK, Oct. 17, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced the appointment of Andrea Lennon to the new role of Chief Client Officer, effective immediately.

Lennon will be responsible for leading Omnicom’s multi-disciplinary solutions for enterprise clients, including the company’s Global Client Leaders (GCL) Group that manages and orchestrates client solutions across Omnicom’s leading agencies and practice areas. 

As Chief Client Officer, Lennon will focus on transformative marketing solutions and capabilities that drive business results for global enterprise clients. In partnership with her GCL team, she will accelerate solutions that draw on the Group’s best talent while expertly integrating Omnicom’s leading capabilities in data, creative, media, communications and technology.  

Lennon has built a strong track record in marketing transformation at Critical Mass, Omnicom’s digital experience design agency, where she spent seven years working in Asia, Europe and the US prior to being named President two years ago. She held previous positions at R/GA and WPP, leading omnichannel brand communications for top global brands in the health and financial space.

“In a transformed consumer world, our enterprise clients increasingly want fully integrated service solutions that seamlessly draw on our best talent and capabilities from every discipline. Our GCL community of client leaders have been at the center of our success in this area,” said Daryl Simm, President and Chief Operating Officer of Omnicom Group. “Andrea’s skills in building high performing, digitally native teams are ideal in taking our business impact to the next level.” 

“I hope to bring new perspective to the amazing work our client leaders are doing for Omnicom’s global clients,” said Lennon. “I’m most excited about the opportunity to accelerate the delivery of connected solutions across the Omnicom portfolio and drive meaningful growth for our client partners.”

Based in New York, Lennon is passionate about promoting equity and inclusion, advancing diversity goals and enacting bias training. In her off hours, she supports young talent through the British Interactive Media Association (BIMA), Who’s Your Momma and Omniwomen. 

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

NEW YORK, Oct. 11, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) will publish its third quarter 2022 results on Tuesday, October 18, 2022 after the New York Stock Exchange closes. The company will also host a conference call to review the financial results on Tuesday, October 18, 2022 starting at 4:30 p.m. Eastern Time. Participants may listen to the conference call by dialing 844-291-6362 (domestic) or 234-720-6995 (international), along with access code 9962421. The conference call will be simulcast and archived on our website at investor.omnicomgroup.com. 

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

View original content to download multimedia:https://www.prnewswire.com/news-releases/omnicom-group-schedules-third-quarter-2022-earnings-release-and-conference-call-301646398.html

SOURCE Omnicom Group Inc.

NEW YORK, Sept. 28, 2022 /PRNewswire/ — Omnicom Group Inc. (  NYSE: OMC) has been recognized as the most effective marketing communications company in the world in the 2021 Global Effie Effectiveness Index. The Effie Awards are one of the industry’s most prestigious honors celebrating “ideas that work” in the industry.

Four Omnicom agency networks – BBDO Worldwide, DDB Worldwide, OMD and TBWA\Worldwide – placed in the top six of the Most Effective Agency Network category. At the local level, DDB Colombia, Sancho BBDO and Colenso BBDO ranked in the top ten of the Most Effective Agency Offices in the world.

These notable rankings demonstrate Omnicom’s standout talent among the 4,500 global finalists involved.

“This is an incredible honor to be recognized by the Effies, especially during a very difficult period where our people had to contend with a global pandemic among other geopolitical challenges,” commented John Wren, Chairman and CEO of Omnicom Group. “I’m so proud of all of our winners and want to congratulate them. Our ranking is a reflection of our people’s dedication to upholding the most effective and creative work in the industry.”

“The 2021 Effie Index reflects work achieved during one of the most challenging periods in recent history. The brands and agencies included in these rankings have shown a relentless commitment to marketing effectiveness, and represent the tenacity, agility and creativity across our global industry,” said Traci Alford, Global CEO, Effie Worldwide. “Congratulations to all of the top ranked companies for continuing to deliver ideas that work and grow your businesses.”

About Effie
Effie is a global 501c3 non-profit whose mission is to lead and evolve the forum for marketing effectiveness. Effie leads, inspires and champions the practice and practitioners of marketing effectiveness through education, awards, ever-evolving initiatives and first-class insights into marketing strategies that produce results. The organization recognizes the most effective brands, marketers and agencies globally, regionally and locally through its 50+ award programs across the world and through its coveted effectiveness rankings, the Effie Index. Since 1968, Effie is known as a global symbol of achievement, while serving as a resource to steer the future of marketing success. For more details, visit effie.org.

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

Transact will offer leading eCommerce and eRetail services powered by Omni

NEW YORK, Sept. 22, 2022 /PRNewswire/ — Omnicom Group Inc. ( NYSE: OMC) today announced Transact, a dedicated practice focused on connected-commerce consulting and eRetail execution services. Transact will drive sales and grow market share on eRetail platforms, capitalizing on Omnicom’s recently announced partnerships with Amazon, Instacart, Kroger and Walmart Connect.

“eCommerce and eRetail are at the center of our clients’ growth and transformation agendas. In scaling Transact, we are strengthening our leading capabilities for our clients, helping them convert every consumer touchpoint into a new opportunity for growth,” said John Wren, Chairman and CEO, Omnicom.

Transact is the group’s most recent investment in eCommerce services and is on the heels of Omnicom receiving the highest possible scores for retail and commerce media in “The Forrester Wave™: Global Media Management Services, Q3 2022” by Forrester Research, Inc.

“Transact adds to our best-in-class eCommerce services in digital transformation and MarTech consulting, CRM and precision marketing, creative content and campaign activation, and media. Together, we provide clients a full funnel view of commerce to inspire, explore and execute marketing communications. We will continue to strategically invest and pursue acquisitions to further enhance our capabilities,” added Wren.

Leading Transact is CEO Frank Kochenash, a recognized industry leader and former executive at Amazon, McKinsey and prior President of Wunderman Thompson Commerce who joined Omnicom in March 2022.

“Our clients demand eCommerce expertise, but they also realize eCommerce must be coordinated with their overall marketing and sales activities to be most effective. Our dedicated and experienced Transact team helps clients drive eCommerce share and sales and enables multi-platform and retail success,” says Kochenash.

Transact’s eCommerce consulting and eRetail execution services include retail media and analytics, catalog management, content optimization, as well as account management and operations to meet the growing client demand for commerce services. Transact’s services are powered and connected by OmniCommerce, part of Omnicom’s industry-leading orchestration platform Omni, which provides a single view of the consumer journey and precise data-driven insights about where to invest to drive growth. 

About Transact
Omnicom Transact (www.omctransact.com) an eCommerce practice focused on connected commerce consulting and eRetail execution services. Its core eRetail services include strategic account management and operations, catalog management, content strategy, creation, and optimization as well as retail media advanced analytics. Transact uses OmniCommerce, part of the Omni marketing orchestration platform, which provides a single view of the consumer journey and precise data-driven insights to deliver best-in-class performance and innovative new approaches to eCommerce. 

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

This follows OPMG and OMG being named leaders in marketing creative and content services and global media management assessments, respectively

NEW YORK, Aug. 10, 2022 /PRNewswire/ — Omnicom Group (NYSE: OMC) today announced it has been named a Leader in “The Forrester Wave™: Global Marketing Services, Q3 2022” by Forrester Research, Inc. With this assessment, Omnicom has been named a leader in three Forrester Wave™ assessments that cover the critical areas of global media management services, marketing creative and content services, and global marketing services.

Within the 17-criterion evaluation, Omnicom Group received the highest scores possible in five criteria: creative content and services, media management services, integration services, global client teams and innovation roadmap.

The evaluation noted that “Omnicom stands out for its innovation and integrates media, content, and performance.” It specifically notes that “the Omni audience platform merges insight, workflow, execution, and activation in one OS, and the company’s innovation plans for a universal taxonomy, deeper marketing automation, and commerce intelligence will accelerate its global marketing capabilities.”

“We received the highest possible scores in criteria in critical areas of our business: creative and content services, media management services, integration services, innovation roadmap, and talent management,” said John Wren, Chairman and CEO of Omnicom Group. “Clients are looking for their partners to turn disparate capabilities into integrated, global marketing solutions. We believe these criteria show we are well equipped to design end-to-end campaigns that brands need to reach consumers wherever they are.”

“Omnicom Group bests the market in creative and content, thanks to its intelligence-powered creative craft, and in media management due to its software-driven effectiveness,” said the report, authored by Jay Pattisall, Principal Analyst at Forrester. It stated, “The company also has strong global marketing capabilities that are among the strongest integration and global client team capabilities in this evaluation as well as resources that outpace the category…Omnicom Group is a good fit for CMOs of enterprise brands looking to connect and supercharge the many components of marketing experience.”

This Forrester Wave™ evaluation for global marketing services follows the recent publication of “The Forrester Wave™: Global Media Management Services, Q3 2022“, where fellow Omnicom network Omnicom Media Group (OMG) was named a Leader and received the highest ranking in the Current Offering category. More recently, Omnicom Precision Marketing Group was named a Leader and received the highest ranking in the Strategy category in “The Forrester Wave™: Marketing Creative and Content Services, Q3 2022.”

ABOUT OMNICOM GROUP INC.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

The results follow another analyst report noting that Omnicom Media Group “leads in retail and commerce media”

NEW YORK, July 25, 2022 – Omnicom Precision Marketing Group (OPMG) today announced it has been named a Leader in “The Forrester Wave™: Marketing Creative and Content Services, Q3 2022” by Forrester Research, Inc. Within the 17-criterion evaluation, OPMG was the top-ranked company in the Strategy category, receiving the highest scores possible in three criteria: execution roadmap, innovation roadmap, and workforce strategy and automation.

The group also received the highest scores possible in three criteria in the Current Offering category, including creative intelligence, dynamic creative optimization technology, and awards and accolades. The evaluation noted that “OPMG modernizes content with creative intelligence and automation prowess.” It also stated, “The agency’s innovation comes from differentiated investments like a universal media/content taxonomy, AI-powered creative workflows, and expanded digital commerce partnerships.”

OPMG Chief Executive Officer Luke Taylor said, “This recognition from Forrester is a strong affirmation that our investments in AI and machine learning technologies are driving significant effectiveness and efficiency gains across our customer base. It is particularly rewarding that OPMG was recognized for both the quality of its creative talent and the best-in-class deployment of dynamic content delivery techniques that drive better outcomes for our clients.”

“OPMG stands apart from others in this evaluation for its creative intelligence, dynamic creative optimization (DCO) services, and caliber of creativity, underscored by significant recognition in industry awards,” said the report, authored by Jay Pattisall, Principal Analyst at Forrester. It also stated, “Clients looking to scale campaigns with audience intelligence and connect brand to performance should consider working with OPMG and its agencies.”

This evaluation of marketing creative and content services is a new Forrester Wave™ and part of a portfolio of five Forrester Wave™ evaluations. Other evaluations within the portfolio focus on media, data strategy and activation, digital experience, and other marketing services. This Forrester Wave™ evaluation for marketing creative and content services follows the recent publication of “The Forrester Wave™: Global Media Management Services, Q3 2022”, where fellow Omnicom network Omnicom Media Group (OMG) was named a Leader and the top ranked company in the Current Offering category. OMG emerged with the highest scores possible in the following criteria: retail media, commerce media, intelligence and insights, operations, optimization, and innovation road map.

ABOUT OMNICOM PRECISION MARKETING GROUP
Omnicom Precision Marketing Group aligns Omnicom’s global digital, data and CRM capabilities to deliver precisely targeted and meaningful customer experiences at scale. Using its universal framework of connected data, connected intelligence, and connected experiences, OPMG provides services that include data-driven product / service design, AdTech / MarTech strategy and implementation, CRM / loyalty strategy and activation, econometric and attribution modeling and digital experience design and development. At the core of delivering these services is Omni, an advanced technology platform that combines a powerful cultural insights engine with massively scaled data insights from first-, second- and third-party sources, including several proprietary Omnicom data partnerships. OPMG is a division of Omnicom Group Inc. (NYSE: OMC).

ABOUT OMNICOM GROUP INC. Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries.

Revenue of $3,567.2 million flat, with organic growth of 11.3%

Operating profit of $541.6 million

Operating profit margin of 15.2%

Diluted earnings per share of $1.68

NEW YORK, July 19, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter ended June 30, 2022.

“We performed well on every metric this quarter, led again by double-digit organic revenue growth,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “The changes we have made in our portfolio are delivering better results for our clients as we are uniquely qualified to help them digitally transform their business, navigate complexity, and expand in high-growth areas like retail media and e-commerce.  As we enter the second half of the year, we are in a strong financial position, and our company is well-prepared to manage through economic headwinds.”

$ in millions, except per share amounts	Three Months Ended June 30,
		2022				2021				Adjustments				2021 Adjusted
Revenue		$ 3,567.2				$ 3,571.6				$ –				$ 3,571.6
Operating Profit 1		541.6				568.4				(50.5)				517.9
Operating Profit Margin 1		15.2 %				15.9 %								14.5 %
Interest expense 1		40.1				73.5				(26.6)				46.9
Net Income 3		348.4				348.2				(31.0)				317.2
Net Income per Share – Diluted 3		$ 1.68				$ 1.60				$ (0.14)				$ 1.46
EBITA 1,4		$ 562.4				$ 589.6				$ (50.5)				$ 539.1
EBITA Margin 1,4		15.8 %				16.5 %								15.1 %

Notes:  Non-GAAP Adjustments for the three months ended June 30, 2021: 1) Operating Profit, EBITA and related margins include a $50.5 million gain on the disposition of a subsidiary; 2) Interest expense includes a $26.6 million pre-tax charge on the early extinguishment of debt; 3) Net Income and Net Income per Share for Omnicom Group Inc. include a $19.5 million after-tax charge on the early extinguishment of debt and a $50.5 million gain on the disposition of a subsidiary; the tax impact on the gain of the sale of subsidiary was nominal; and 4) See Reconciliations of Non-GAAP Financial Measures on Pages 8–9.

Second Quarter 2022 Results

Revenues 
Worldwide revenue growth in the second quarter of 2022 compared to the second quarter of 2021 was led by an increase in revenue from organic growth of $403.8 million, or 11.3%.  Acquisition revenue, net of disposition revenue, was a decrease of $239.8 million, or 6.7%, reflecting dispositions in the Advertising & Media discipline in the second quarter of 2021 and the disposition of our businesses in Russia in the first quarter of 2022.  The impact of foreign currency translation was a decrease of $168.4 million, or 4.7%.  Reported total revenue in the second quarter of 2022 decreased $4.4 million, or 0.1%.

Organic growth in the second quarter of 2022 compared to the second quarter of 2021 increased across all of our fundamental disciplines, including: 8.2% for Advertising & Media, 15.8% for Public Relations, 21.0% for Precision Marketing, 9.2% for Healthcare, 9.3% for Execution & Support, 11.2% for Commerce & Brand Consulting, and 36.6% for Experiential.

Organic growth in the second quarter of 2022 compared to the second quarter of 2021 increased across our regional markets as follows: 10.7% for the United States, 15.1% for the Euro Markets & Other Europe, 4.7% for Asia Pacific, 12.0% for the United Kingdom, 12.5% for Other North America, 14.0% for Latin America and 28.3% for the Middle East & Africa.  Growth in Asia Pacific was negatively impacted by COVID-19 lockdowns in China.

Expenses 
Operating expenses increased $22.4 million, or 0.7%, to $3,025.6 million compared to the second quarter of 2021, including a decrease of 4.8% from the impact of foreign currency translation.  Operating expenses in the the second quarter of 2021 were favorably impacted by a $50.5 million gain on the disposition of a subsidiary.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, and third party service costs.  In total, salary and service costs  decreased $37.1 million, or 1.4%.  Salary and related costs increased $79.1 million, or 4.6%, due primarily to the increase in organic revenue, an increase in headcount, and an increase in travel and related costs. Third-party service costs decreased $116.2 million, or 13.2%, due primarily to dispositions in the Advertising & Media discipline in the United States and the disposition of our businesses in Russia, partially offset by costs related to our organic growth in revenue.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, decreased $0.9 million, or 0.3%, to $293.0 million, due to lower rent and other occupancy costs, partially offset by the continued return of our workforce to the office.

SG&A expenses increased $7.7 million, or 7.5%, to $110.9 million due to higher marketing and professional fees.

Operating Profit 
Operating profit decreased $26.8 million, or 4.7%, to $541.6 million compared to the second quarter of 2021, and our operating profit margin decreased to 15.2% from 15.9%.  After adjusting for a $50.5 million gain on the disposition of a subsidiary in the second quarter of 2021, operating profit in the second quarter of 2022 of $541.6 million increased $23.7 million, or 4.6%, and the related margin improved to 15.2% from 14.5%.

Interest Expense 
Net interest expense in the second quarter of 2022 decreased $33.4 million, or 45.4%, to $40.1 million compared to the second quarter of 2021.  Interest expense on debt in the second quarter of 2022 decreased $27.5 million to $47.2 million, primarily as a result of the $26.6 million charge incurred in the second quarter of 2021 related to the early redemption of debt in May 2021. Net Interest expense in the second quarter of 2022 also decreased due to lower average debt balances, a lower weighted-average cost of debt, and higher interest income.

Income Taxes 
Our effective tax rate of 26.5% in the second quarter of 2022 increased from 24.9% in the second quarter of 2021. The higher effective tax rate for 2022 was primarily the result of the nominal tax applied to the $50.5 million book gain on the disposition of subsidiary in the second quarter of 2021 resulting from the excess of tax over book basis.

Net Income – Omnicom Group Inc. 
Net income – Omnicom Group Inc. for the second quarter of 2022 increased $0.2 million, or 0.1%, to $348.4 million compared to the second quarter of 2021.  Net income – Omnicom Group Inc. for the second quarter of 2021 included a $50.5 million pre-tax and after-tax gain on the sale of a subsidiary, and interest expense related to the early redemption of debt of $26.6 million ($19.5 million after-tax). Diluted shares outstanding decreased to 206.9 million, or 4.7%, from 217.1 million.  Diluted net income per share of $1.68 increased $0.08, or 5.0%, from $1.60 per share.

EBITA 
EBITA in the second quarter of 2022 decreased $27.2 million, or 4.6%, to $562.4 million compared to the second quarter of 2021, and our EBITA margin decreased to 15.8% from 16.5%.  After adjusting for a $50.5 million gain related to the disposition of a subsidiary in the second quarter of 2021, EBITA in the second quarter of 2022 of $562.4 million increased $23.3 million, or 4.3%, and the related margin improved to 15.8% from 15.1%.

Risks and Uncertainties 
Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation and supply-chain disruptions could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness and other developments.

Definitions – Components of Revenue Change
We use certain terms in describing the components of the change in revenue above. 

Foreign exchange rate impact: calculated by translating the current period’s local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue.

Acquisition revenue, net of disposition revenue: Acquisition revenue is calculated as if the acquisition occurred twelve months prior to the acquisition date by aggregating the comparable prior period revenue of acquisitions through the acquisition date. As a result, acquisition revenue excludes the positive or negative difference between our current period revenue subsequent to the acquisition date and the comparable prior period revenue and the positive or negative growth after the acquisition date is attributed to organic growth. Disposition revenue is calculated as if the disposition occurred twelve months prior to the disposition date by aggregating the comparable prior period revenue of disposals through the disposition date. The acquisition revenue and disposition revenue amounts are netted in the description above.

Organic growth: calculated by subtracting the foreign exchange rate impact component and the acquisition revenue, net of disposition revenue component from total revenue growth.

Conference Call
Omnicom will host a conference call to review its financial results on Tuesday, July 19, 2022 at 4:30 p.m. Eastern Time. Participants can listen to the conference call by calling 844-291-6362 (domestic) or 234-720-6995 (international), along with access code 1468163. The call will also be simulcast and archived on our investor relations website.

Corporate Responsibility
At Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website (csr.omnicomgroup.com) for highlights of our progress across the four areas on which we focus: People, Community, Environment and Governance.

About Omnicom Group Inc.
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company.  Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries. 

Non-GAAP Financial Measures
We use certain non-GAAP financial measures in describing our performance. We use EBITA (defined as earnings before interest, taxes and amortization of intangible assets) and EBITA Margin (defined as EBITA divided by revenue) as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization of intangible assets arising from acquisitions). We believe EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business.  We use Operating Profit Adjusted, Operating Profit Margin Adjusted, EBITA Adjusted, EBITA Margin Adjusted, Net Income – Omnicom Group Inc. Adjusted and Net Income per diluted share – Omnicom Group Inc. Adjusted as additional operating performance measures. We believe these measures are useful in evaluating the impact of certain items on operating performance and allows for comparability between reporting periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, from time to time, the Company or its representatives have made, or may make, forward-looking statements, orally or in writing. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial position, or otherwise, based on current beliefs of the Company’s management as well as assumptions made by, and information currently available to, the Company’s management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “should,” “would,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: the impact of the war in Ukraine, adverse economic conditions, the COVID-19 pandemic, severe and sustained inflation in countries that comprise our major markets, supply chain issues affecting the distribution of our clients’ products; international, national or local economic conditions that could adversely affect the Company or its clients; losses on media purchases and production costs incurred on behalf of clients; reductions in client spending, a slowdown in client payments and a deterioration or a disruption in the credit markets; the ability to attract new clients and retain existing clients in the manner anticipated; changes in client advertising, marketing and corporate communications requirements; failure to manage potential conflicts of interest between or among clients; unanticipated changes relating to competitive factors in the advertising, marketing and corporate communications industries; the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its critical accounting estimates and legal proceedings; and the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and regulatory environment. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect the Company’s business, including those described in Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements.

Omnicom Group Inc. Detail of Operating Expenses Three Months Ended June 30 (Unaudited) (Dollars in Millions)
	2022	2021
Operating Expenses:
Salary and service costs
Salary and related service costs	$1,800.8	$1,721.7
Third-party service costs	765.2	881.4
Occupancy and other costs	293.0	293.9
Gain on disposition of subsidiary	–	(50.5)
Costs of services	2,859.0	2,846.5
Selling, general and administrative expenses	110.9	103.2
Depreciation and amortization	55.7	53.5
Total Operating Expenses	$3,025.6	$3,003.2

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30 (Unaudited) (Dollars in Millions)
	2022	2021
Net Income – Omnicom Group Inc.	$348.4	$348.2
Net Income Attributed To Noncontrolling Interests	21.6	23.4
Net Income	370.0	371.6
Income (Loss) From Equity Method Investments	1.6	(0.1)
Income Tax Expense	133.1	123.2
Income Before Income Taxes	501.5	494.9
Interest Income	11.1	6.8
Interest Expense	51.2	80.3
Operating Profit	541.6	568.4
Add back: Amortization of intangible assets	20.8	21.2
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	562.4	589.6
Gain on disposition of subsidiary		(50.5)
Non-GAAP EBITA – Adjusted		$539.1
Revenue	$3,567.2	$3,571.6
EBITA	$562.4	$589.6
EBITA Margin %	15.8%	16.5%
Non-GAAP EBITA – Adjusted		$539.1
Non-GAAP EBITA – Adjusted Margin %		15.1%

For definition of Adjustments, see footnote on page 1. The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA (defined as earnings before interest, taxes and amortization of intangible assets) and EBITA Margin (defined as EBITA divided by revenue) for the periods presented. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization of intangible assets arising from acquisitions). Accordingly, we believe EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business. The above table also reconciles the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of EBITA Adjusted and EBITA Margin Adjusted for the three months ended June 30, 2021. Management believes excluding the gain on disposition of subsidiary provides investors with a better picture of the performance of the business during the period presented. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

Omnicom Group Inc. Reconciliations of Non-GAAP Financial Measures Three Months Ended June 30, 2021 (Unaudited) (Dollars in Millions, Except Per Share Data)
	Non-GAAP Adjusted Operating Profit
Net Income – Omnicom Group Inc.	$348.2
Net Income Attributed To Noncontrolling Interests	23.4
Net Income	371.6
Income (Loss) From Equity Method Investments	(0.1)
Income Tax Expense	123.2
Income Before Income Taxes	494.9
Net Interest Expense	73.5
Operating Profit – Reported	568.4
Gain on disposition of subsidiary	(50.5)
Non-GAAP Operating Profit – Adjusted	$517.9
Revenue	$3,571.6
Operating Profit – Adjusted	$517.9
Operating Profit – Adjusted Margin %	14.5%
	Non-GAAP Adjusted Net Interest Expense
Net Income – Omnicom Group Inc.	$348.2
Net Income Attributed To Noncontrolling Interests	23.4
Net Income – Reported	371.6
Income (Loss) From Equity Method Investments	(0.1)
Income Tax Expense – Reported	123.2
Income Before Income Taxes	$494.9
Net Interest Expense – Reported	73.5
Early extinguishment of debt	(26.6)
Non-GAAP Income Tax Expense – Adjusted	$46.9

	Non-GAAP Adjusted
	Net Income – Omnicom Group Inc.	Diluted Shares	Net Income per Share – Diluted
Net Income – Omnicom Group Inc. – Reported	$348.2	217.1	$1.60
Gain on disposition of subsidiary	(50.5)	217.1	(0.23)
Early extinguishment of debt	26.6	217.1	0.12
Tax expense on early extinguishment of debt	(7.1)	217.1	(0.03)
Non-GAAP Net Income – Omnicom Group Inc. – Adjusted	$317.2	217.1	$1.46

The above tables reconcile the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of Operating Profit Adjusted, Net Interest Expense Adjusted, Net Income – Omnicom Group Inc. Adjusted and Net Income per share – Diluted Adjusted for the period presented. Management believes excluding the gain on disposition of subsidiary and the charge on the early extinguishment of debt provides investors with a better picture of the performance of the business during the period presented.

SOURCE Omnicom Group Inc.