Author: Amanda Granath

NEW YORK and SAO PAOLO , July 27, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced its media services division, Omnicom Media Group, has acquired Outpromo and Global Shopper, two of Brazil’s leading connected commerce and retail media agencies. The acquisitions create the foundation for a dedicated, end-to-end e-commerce and retail media performance agency in the Brazilian market for Omnicom Media Group.  

Outpromo was founded in Sao Paolo in 1999 as a shopper marketing agency. Over its two-plus decades, the agency has evolved and expanded its offer to become a leader in building and growing brands in an omni-commerce world. Its 250 professionals deliver specialty services – including retail e-marketing, e-commerce, social commerce and retail media – to clients across the food and beverage, household products and skincare categories, among others. Outpromo has operated as a partner to Omnicom agencies in Brazil since 2014 and shares clients like Adidas, Heineken, and P&G, among others.

Global Shopper’s offer to brands is concentrated around three fundamental pillars: commerce, innovation and digital transformation. From its Sao Paulo headquarters, Global Shopper’s 50+ professionals deliver frictionless, always-on experiences between brands and consumers, creating a constant and efficient presence in the lives of their customers across a broad spectrum of consumer product categories, including food and beverage, health and beauty, footwear, and electronics. 

Ricardo Franken, CEO of Outpromo, and Mauricio Gallian, CEO of Global Shopper, will retain a minority stake in the companies and will continue to serve in their current roles.

“We have known Mauricio and Ricardo for many years, and they have been terrific partners to Omnicom agencies,” said Omnicom Media Group CEO Florian Adamski. “With Global Shopper and Outpromo now part of our group, OMG is gaining deep commerce and retail media expertise in Latin America’s largest market. Connecting this expertise with Omni Commerce will create end-to-end solutions that enable always-on insights, activation, optimization and attribution across the entire commerce landscape. The result is better commerce outcomes for clients – theirs, ours, those that we currently share and those that we will win together.”

“Omnicom Media Group and Global Shopper share a view of the commerce landscape as a constantly evolving integrated ecosystem of services and partnerships, where the best data, technology and talent combine to deliver consumer experiences that drive sales and grow share,” says Global Shopper CEO Mauricio Gallian. “From this common perspective, we will partner to advance our clients’ results not only in conversion but also in awareness and consideration through a full funnel view and a deep understanding of the entire consumer journey.”  

Outpromo CEO Riccardo Franken added, “The combination of our category and regional expertise and Omnicom Media Group’s industry leading tools and technology, powered by Omni, translates to a big win for our clients and our people.”  

The acquisition is expected to close in the third quarter and is subject to customary closing conditions, including regulatory approval. 

About Omnicom Media Group 
Omnicom Media Group (OMG), the media services division of Omnicom Group Inc. (NYSE: OMC) – delivers transformational experiences for consumers, clients, and talent. Powered by the Omni marketing orchestration system, OMG connects best -in-class capabilities that enable our full-service media agencies OMD, PHD and Hearts & Science to deliver more relevant and actionable consumer experiences; more productive and proactive client experiences; and more collaborative and rewarding talent experiences for the more than 23,000 people serving the world’s leading brands in OMG agencies around the globe. 

About Outpromo
Outpromo is an omnichannel commerce agency specializing in planning and activating brand experiences across physical and digital environments. Outpromo promotes brand and consumer engagement through a tailor-made approach integrating Growth Strategy, Growth Marketing and Growth Sciences to deliver better outcomes to clients. Founded in Sao Paolo in 1999, Outpromo’s 250 professional deliver specialty services – including retail e-marketing, e-commerce, social commerce and retail media – to clients across the food and beverage, household products and skincare categories, among others. Outpromo serves brands such as Adidas, Diageo, Heineken, Heinz, L’Occitane, Nivea, P&G and Reckitt. 

About Global Shopper
Global Shopper is a connected commerce agency with a unique approach to driving brand growth. Global Shopper’s offer to brands is concentrated around three fundamental pillars: commerce, innovation, and digital transformation. From its Sao Paulo headquarters, Global Shopper’s 50+ professionals deliver frictionless, always-on experiences between brands and consumers, creating a constant and efficient presence in the lives of their customers across a broad spectrum of consumer product categories. Global Shopper serves as a connected commerce agency for clients such as: C&A, J&J, and Sanoifi, among others.

SOURCE Omnicom Group Inc.

NEW YORK, July 25, 2023 /PRNewswire/ — The Board of Directors of Omnicom (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on October 12, 2023 to Omnicom common shareholders of record at the close of business on September 21, 2023.

About Omnicom
Omnicom (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 $3,609.9 million, with organic growth of 3.4%

Operating income of $550.7 million

Operating income margin of 15.3%

Diluted earnings per share of $1.82

NEW YORK, July 18, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced results for the quarter ended June 30, 2023.

“Organic revenue grew 3.4% in the second quarter and 4.3% year-to-date, placing us comfortably within our expected range and driving strong growth in earnings per share,” said John Wren, Chairman and Chief Executive Officer of Omnicom. “While the balance of the year will continue to see economic uncertainty, we are entering a dynamic and exciting new era for our company.”  Wren added, “Omnicom has secured leading positions in generative AI technologies and partnerships to deliver on our promise to achieve the best outcomes for our clients and increase the operational efficiency of our company.”

Second  Quarter 2023 Results

 

Revenues
Reported total revenue in the second quarter of 2023 increased $42.7 million, or 1.2%, to $3,609.9 million.  Worldwide revenue growth in the second quarter of 2023 compared to the second quarter of 2022 was led by an increase in revenue from organic growth of $121.4 million, or 3.4%.  Acquisition revenue, net of disposition revenue, decreased $54.3 million, or 1.5%, primarily reflecting dispositions in the Execution & Support discipline in the first and second quarter of 2023.  The impact of foreign currency translation was a decrease of $24.4 million, or 0.7%.

Organic growth by discipline in the second quarter of 2023 compared to the second quarter of 2022 was as follows: 5.1% for Advertising & Media, 9.2% for Experiential, 3.0% for Healthcare, 2.3% for Precision Marketing, 2.4% for Commerce & Brand Consulting, and 0.1% for Public Relations. Execution & Support decreased 3.8%. In the first quarter of 2023, we realigned the classification of certain services primarily within our Commerce & Brand Consulting, Execution & Support, and Experiential disciplines, and revenue by discipline amounts for prior periods were revised to reflect the current period presentation.

Organic growth by region in the second quarter of 2023 compared to the second quarter of 2022 was as follows: 2.4% for the United States, 7.5% for Asia Pacific, 2.6% for Euro Markets & Other Europe, 8.4% for Other North America, 2.5% for the United Kingdom, 6.9% for Latin America, and 4.0% for the Middle East & Africa.

Expenses
Operating expenses increased $33.6 million, or 1.1%, to $3,059.2 million in the second quarter of 2023 compared to the second quarter of 2022. Included in operating expenses in the second quarter of 2023 is the net impact from a gain on the disposition of a subsidiary in our Execution & Support discipline of $78.8 million ($55.9 million net of income tax) and $72.3 million ($54.5 million net of income tax) of repositioning costs primarily related to severance incurred in the period in connection with a rebalancing of our workforce.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, third-party service costs, and third-party incidental costs.  Salary and service costs include employee compensation and benefits costs and freelance labor. Salary and service costs increased $51.8 million, or 2.0%, to $2,617.8 million.  Salary and related costs decreased $28.8 million, or 1.6%, to $1,772.0 million. While headcount increased as a result of organic growth, the increase was offset by reductions from dispositions in our Execution & Support discipline in the first and second quarters of 2023.  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.  Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs that we bill back to the client directly at our cost and which we are required to include in revenue. Third-party service costs increased $86.8 million, or 13.8%, to $715.8 million, and third-party incidental costs decreased $6.2 million, or 4.6%, to $130.0 million and were impacted by the dispositions in our Execution & Support discipline.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $4.7 million, or 1.6%, to $297.7 million, due to increases in other occupancy expenses, partially offset by lower rent.

SG&A expenses decreased $11.8 million, or 10.6%, to $99.1 million, primarily due to lower professional fees and lower marketing related costs.

Operating Income
Operating income increased $9.1 million, or 1.7%, to $550.7 million in the second quarter of 2023 compared to the second quarter of 2022.  The related operating income margin was 15.3% compared to 15.2% for the second quarter of 2022.  In the second quarter of 2023, non-GAAP adjusted operating income of $544.2 million, which excludes the net effect of a gain on the disposition of a subsidiary offset by repositioning costs, increased 0.5%, and the non-GAAP adjusted operating income margin was 15.1%.

Interest Expense, net
Net interest expense in the second quarter of 2023 decreased $12.7 million to $27.4 million compared to the second quarter of 2022.  Interest expense increased $6.3 million to $57.5 million, and interest income increased $19.0 million to $30.1 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 27.0% in the second quarter of 2023 increased from 26.5% in the second quarter of 2022. The effective tax rate in the second quarter of 2023 was unfavorably impacted by a higher tax rate on a gain on the disposition of a subsidiary and a lower tax benefit on the repositioning costs in certain markets.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for the second quarter of 2023 increased $17.9 million, or 5.1%, to $366.3 million compared to the second quarter of 2022.  The net impact of the gain on the disposition of a subsidiary, offset by repositioning costs, increased Net income – Omnicom Group Inc. by $1.4 million. Diluted shares outstanding decreased to 201.6 million, or 2.6%, from 206.9 million in the second quarter of 2022 as a result of net share repurchases.  Diluted net income per share of $1.82 increased $0.14, or 8.3%, from $1.68 per share. Excluding the net effect of a gain on the disposition of a subsidiary, offset by repositioning costs, non-GAAP adjusted diluted earnings per share for the second quarter of 2023 was $1.81.

EBITA
EBITA increased $7.6 million, or 1.4%, to $570.0 million in the second quarter of 2023 compared to the second quarter of 2022.  The related EBITA margin was 15.8% compared to 15.8% for the second quarter of 2022.   In the second quarter of 2023, non-GAAP adjusted EBITA of $563.5 million, which excludes the net effect of a gain on the disposition of a subsidiary offset by repositioning costs, increased 0.2%, and the non-GAAP adjusted EBITA margin was 15.6%.

Risks and Uncertainties
Current global economic challenges, including the war in Ukraine, high and sustained inflation, rising interest rates, supply chain disruptions, credit market deterioration, and other macroeconomic factors, could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We closely monitor economic conditions, 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 18, 2023 at 4:30 p.m. Eastern Time. Participants can listen to the conference call by calling 877-692-8955 (domestic) or 234-720-6979  (international), along with access code 336067. 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 (omnicomgroup.com/corporate-responsibility) for highlights of our progress across the areas on which we focus: Empower People, Protect Our Planet and Lead Responsibly. 

About Omnicom
Omnicom (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 present financial measures determined in accordance with generally accepted accounting principles in the United States (“GAAP”) and adjustments to the GAAP presentation (“Non-GAAP”), which we believe are meaningful for understanding our performance. EBITA is defined as operating income before interest, taxes, and amortization of intangible assets, and EBITA margin is defined as EBITA divided by revenue. 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 arising from acquisitions). We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per diluted share – Omnicom Group Inc. as additional operating performance measures. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow 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 accordance with GAAP. Non-GAAP financial measures as 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 war in Ukraine, the lingering effects of the COVID-19 pandemic, high and persistent 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 related 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; effectively managing the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and partnerships in our business; and risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives. 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, 2022. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements.

LONDON, July 11, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced its media services division, Omnicom Media Group, has acquired Ptarmigan Media, a specialist agency that provides end-to-end media and marketing solutions to financial services brands.

Founded in the UK in 1993, Ptarmigan delivers a range of services including fully integrated media planning and buying, market research, search and social, as well as content and creative. The company specializes in serving financial services clients in the Asset Management, Life and Pensions, Banking, Trading and Platforms, Wealth Management, Fintech, and Insurance sectors across APAC, EMEA and North America. Ptarmigan is headquartered in London and has several office locations around the world, including Hong Kong, New York, Singapore and Sydney for its 100+ media professionals.

“Ptarmigan and Omnicom Media Group have a shared understanding of the complexities of today’s media marketplace. Together, we can help our clients effectively navigate the market to drive business growth by combining the global strength, tools and technologies of Omnicom Media Group, and the deep category expertise Ptarmigan has built over its three decades working in the financial sector,” says Florian Adamski, CEO of Omnicom Media Group. “The combined capabilities that will result from this acquisition will enable an unprecedented and singular depth of financial services industry expertise and media buying scale, translating to better outcomes for our clients, increased professional opportunities for our people, and accelerated growth as Omnicom Media Group and Ptarmigan join forces.” 

“Ptarmigan has always put clients at the centre of everything we do – and becoming part of Omnicom Media Group continues that commitment,” says Ptarmigan CEO Matt Ball. “Combining our expertise with the scope and scale of Omnicom Media Group’s industry leading tools and technology will have an exponential impact on the value we deliver to the world’s leading financial brands, bringing next level purpose, planning and performance to the challenge of connecting our clients to the world’s financial decision makers.”

Ptarmigan Media will continue to operate as an independent brand within Omnicom Media Group and will be led by its current management team.

About Ptarmigan
Ptarmigan Media is a market leading financial services media agency, specialising in the Asset Management, Investment Banking, Trading, Insurance, and Wealth Management sectors. With headquarters in London and regional offices in New York, Singapore, Hong Kong, Sydney, Taipei, and Tokyo, the agency provides clients with unrivaled access to B2B and B2C audiences in the world’s leading financial centers.

Ptarmigan Media offers a comprehensive range of services including strategic planning, paid advertising, social media management, analytics, and content creation. With a dedicated global team of specialist media professionals, the agency helps the world’s leading financial brands unlock and grow meaningful connections with their most important customers.

About Omnicom Media Group
Omnicom Media Group (OMG), the media services division of Omnicom (NYSE: OMC), delivers transformational experiences for consumers, clients, and talent. Powered by the Omni marketing orchestration system, OMG connects best-in-class capabilities that enable our full-service media agencies OMD, PHD and Hearts & Science to deliver more relevant and actionable consumer experiences; more productive and proactive client experiences; and more collaborative and rewarding talent experiences for the more than 23,000 people serving the world’s leading brands in OMG agencies around the globe. 

About Omnicom
Omnicom (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, July 10, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) will publish its second quarter 2023 results on Tuesday, July 18, 2023 after the New York Stock Exchange close of trading. The company will also host a conference call to review such financial results on Tuesday, July 18, 2023, starting at 4:30 p.m. Eastern Time. Participants may listen to the conference call by dialing 877-692-8955 (domestic) or 234-720-6979 (international), along with access code 336067. The conference call will be simulcast and archived on our website at investor.omnicomgroup.com. 

About Omnicom
Omnicom (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, May 19, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) has been named Creative Holding Company of the Year in The One Show 2023. This marks the sixth time within the past decade that Omnicom has won the top spot.

The One Show is the world’s most prestigious award show in advertising, design and digital marketing. It is produced annually by The One Club for Creativity, the world’s foremost non-profit organization whose mission is to support and celebrate the success of the global creative community. Now in its 50^th year, The One Show has a rich legacy of honoring some of the most groundbreaking ideas, created by some of the most remarkable minds in creativity.

Creative Holding Company of the Year is awarded to the Agency Holding Company that garners the most points overall for winning entries. Three Omnicom agency networks – DDB Worldwide, TBWA\Worldwide and BBDO Worldwide – helped contribute to this recognition by placing within the top five of the Network of the Year category. At the agency level, BBDO Canada was named Agency of the Year.

“For 50 years, The One Show has honored exceptional work deemed as the best of the best in our industry,” commented John Wren, Chairman and CEO of Omnicom Group. “I’m proud of our leading-edge agencies who consistently top the charts by creating brilliant work that has an impact on our clients’ brands and businesses. Our ‘Holding Company of the Year’ ranking doesn’t mean anything without their genius, and I congratulate them all on their individual wins.”

“Our esteemed juries rightly recognized the stellar creative work of Omnicom agencies around the world,” said Kevin Swanepoel, CEO, The One Club for Creativity, producers of The One Show.  “We congratulate all agencies within the global holding company, in particular BBDO Canada for being our 2023 Agency of the Year.”

This marks the second consecutive year that Omnicom claimed the most points out of the thousands of agencies, nonprofits, corporations, and individuals from around the world who entered The One Show. The win follows on the heels of Omnicom being named Ad Age‘s Holding Company of the Year for the publication’s 2023 A-List and Creativity Awards. Shortly before that, Omnicom was named the World’s Most Effective Agency Holding Company in the 2021 Global Effie Effectiveness Index.

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, May 16, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that it will present at the 51st Annual J.P. Morgan Global Technology, Media and Communications Conference in Boston, Massachusetts on Wednesday, May 24, 2023 at 9:20 a.m. Eastern Time. Live and archived webcasts will be available in the investor relations section of www.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.

SOURCE Omnicom Group Inc.

NEW YORK, May 2, 2023 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on July 7, 2023 to Omnicom Group common shareholders of record at the close of business on June 9, 2023.

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.

Content Supply Chain solution allows Omnicom to deliver impactful customer experiences at scale for clients

NEW YORK and SAN JOSE, Calif., April 25, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC), the most creatively awarded marketing communications company, is partnering with Adobe to reinvent the creation and delivery of creative content through an enterprise licensing deal of Adobe’s new Content Supply Chain solution.

Through the solution, Omnicom agencies across the globe will now have a unified view of every step of the content process, from planning and production to activation and optimization. The end-to-end solution will enable Omnicom’s agencies to efficiently produce creative content that delivers the most effective customer experiences for the ultimate benefit of Omnicom’s client roster of the world’s top marketers and brands.

The newly launched Adobe Content Supply Chain solution brings together an array of Adobe’s industry-leading creative and experience applications, such as Adobe Creative Cloud, Adobe Workfront and Adobe Experience Manager. Omnicom will connect features of Adobe’s solution with Omni, Omnicom’s end-to-end marketing operating system, providing streamlined workflows, enhanced automation and increased operational efficiency – major value adds for Omnicom’s agencies as they work together to service shared clients. In 2022, 100 of Omnicom’s largest clients were served on average by more than 50 of its agencies across disciplines and geographies. Adobe’s Content Supply Chain solution further connects the people, processes, and technology necessary in providing these specialized, integrated client services.  

“This partnership brings together the most creatively awarded holding company and the leader in creative and marketing tools,” said Paolo Yuvienco, EVP, Chief Technology Officer at Omnicom Group. “The two of us share a goal of providing integrated solutions to brands, and our collaboration brings it to life. Through this offering, our agencies from different disciplines and geographies will remain connected throughout the entirety of the content supply chain, helping to transform our clients’ businesses in a faster, more effective way.”

The comprehensive solution by Adobe will help Omnicom agencies meet growing content demands as clients look to provide a larger quantity and variety of personalized content to customers. Assisting in the rapid development of content will be Adobe Firefly and Adobe Sensei GenAI – the company’s new generative AI capabilities. By utilizing Firefly and Sensei GenAI, along with Omnicom’s deep expertise in artificial intelligence and machine learning, the companies will enable Omnicom agencies to deliver powerful experiences at scale that translate to business value for clients.

“Omnicom is a valued Adobe partner and customer and we’re excited to work together to transform the process of producing and delivering content across their business — and for our shared customers,” said Anil Chakravarthy, President, Digital Experience Business at Adobe. “By combining Omnicom’s creative expertise and audience-driven capabilities with Adobe’s content supply chain solution and generative AI capabilities, we can empower creative teams to work more efficiently and effectively and deliver even more impactful outcomes for the world’s largest agencies and brands.” 

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.

Revenue of $3,443.3 million, with organic growth of 5.2%

Operating income of $346.5 million, $465.7 million Non-GAAP adjusted

Operating income margin of 10.1%, 13.5% Non-GAAP adjusted

Diluted earnings per share of $1.11, $1.56 Non-GAAP adjusted

NEW YORK, April 18, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter ended March 31, 2023.

“Our business grew organic revenue by 5.2% in the first quarter, a solid start to the year,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “Despite many macroeconomic, technological and social factors facing our clients, Omnicom is guiding the world’s top companies and their brands to continued growth with highly-specialized marketing and communications services driven by leading analytics, creativity, data, and digital media solutions.” Wren added, “We took operational steps this quarter and have further plans in place to mitigate the impact of potential macro headwinds on our profitability, while continuing to deliver attractive returns.  As we look ahead in 2023, we expect organic growth, portfolio enhancement, financial discipline, and thoughtful capital allocation to continue to benefit our clients and our shareholders.”

First Quarter 2023 Results

Three Months Ended March 31,
$ in millions, except per share amounts	Reported 2023	Non- GAAP Adj.(2)	Non- GAAP 2023 Adj.	Reported 2022	Non- GAAP Adj.(3)	Non- GAAP 2022 Adj.
Revenue	$3,443.3	$—	$3,443.3	$3,410.3	$—	$3,410.3
Operating Income	346.5	119.2	465.7	353.0	113.4	466.4
Operating Income Margin	10.1 %		13.5 %	10.4 %		13.7 %
Net Income 1	227.5	91.0	318.5	173.8	118.2	292.0
Net Income per Share – Diluted 1	$1.11		$1.56	$0.83		$1.39

Notes: 1) Net Income and Net Income per Share for Omnicom Group Inc.; 2) First quarter 2023 operating expenses include $119.2 million ($91.0 million after-tax) related to real estate repositioning costs discussed below; 3) First quarter 2022 operating expenses include $113.4 million ($118.2 million after-tax) related to charges arising from the effects of the war in Ukraine. Effective with the First quarter 2023 reporting,Operating Profit has been renamed Operating Income.  Please refer to non-GAAP adjusted reconciliations on Pages 9-10.

Revenues
Reported total revenue in the first quarter of 2023 increased $33.0 million, or 1.0%, to $3,443.3 million.

Worldwide revenue growth in the first quarter of 2023 compared to the first quarter of 2022 was led by an increase in revenue from organic growth of $178.7 million, or 5.2%.  Acquisition revenue, net of disposition revenue, decreased $35.7 million, or 1.0%, primarily reflecting the disposition of our businesses in Russia announced in the first quarter of 2022.  The impact of foreign currency translation was a decrease of $110.0 million, or 3.2%.

Organic growth by discipline in the first quarter of 2023 compared to the first quarter of 2022 was as follows: 5.1% for Advertising & Media, 7.0% for Precision Marketing, 5.8% for Public Relations, 4.8% for Healthcare, 8.4% for Experiential, 3.6% for Execution & Support, and 3.3% for Commerce & Brand Consulting. In the first quarter of 2023, we realigned the classification of certain services primarily within our Commerce & Brand Consulting, Execution & Support, and Experiential disciplines and revenue by discipline amounts for prior periods were revised to reflect the current period presentation.

Organic growth by region in the first quarter of 2023 compared to the first quarter of 2022 was as follows: 5.1% for the United States, 5.4% for the Euro Markets & Other Europe, 5.9% for the United Kingdom, 2.8% for Asia Pacific, 12.2% for Latin America, 9.5% for the Middle East & Africa, and 6.6% for Other North America.

Expenses
Operating expenses increased $39.5 million, or 1.3%, to $3,096.8 million in the first quarter of 2023 compared to the first quarter of 2022.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, third-party service costs, and third-party incidental costs.  Salary and service costs include employee compensation and benefits costs and freelance labor.  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.  Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs that we bill back to the client directly at our cost and which we are required to include in revenue.  Salary and service costs increased $51.1 million, or 2.1%, to $2,542.9 million.  Salary and related costs decreased $16.6 million, or 0.9%, to $1,778.0 million. While headcount increased as a result of organic growth, the increase was offset by the effects of foreign currency translation. Third-party service costs increased $57.5 million, or 9.9%, to $639.3 million and Third-party incidental costs increased $10.2 million, or 8.8%, to $125.6 million primarily due to an increase in organic revenue.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, decreased $8.6 million, or 2.9%, to $291.6 million, due primarily to reductions from the effects of foreign currency translation.

SG&A expenses decreased $7.5 million, or 7.8%, to $89.2 million, primarily due to lower professional fees, lower marketing related costs, and reductions from the effects of foreign currency translation.

In connection with the transition to a flexible working environment, a hybrid model which allows for partial remote work, we took certain actions to reduce and reposition our office lease portfolio.  In the first quarter of 2023, we recorded a pretax charge of $119.2 million ($91.0 million, after-tax) primarily related to the non-cash impairment of a portion of the operating lease right-of-use assets and the write-off of the net book value of leasehold improvements at the affected locations. Substantially all the charges will be paid out over the remaining lease term.

Operating Income
Operating income decreased $6.5 million, or 1.8%, to $346.5 million in the  first quarter of 2023 compared to the first quarter of 2022.  The related operating income margin was 10.1% compared to 10.4% for the first quarter of 2022.  In the first quarter of 2023, non-GAAP adjusted operating income of $465.7 million decreased 0.2%, and the non-GAAP adjusted operating income margin was 13.5%.

Interest Expense, net
Net interest expense in the first quarter of 2023 decreased $23.5 million to $19.3 million compared to the first quarter of 2022.  Interest expense increased $3.9 million to $54.9 million, and interest income increased $27.4 million to $35.6 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 25.5% in the first quarter of 2023 decreased from 37.2% in the first quarter of 2022. The effective tax rate in the first quarter of 2023 was favorably impacted primarily by previously unrecognized tax benefits, partially offset by a lower tax benefit in certain jurisdictions related to the real estate repositioning charge in the quarter and the increase in the U.K. statutory tax rate. The effective tax rate in the first quarter of 2022 was negatively impacted by the non-deductibility of charges arising from the effects of the war in Ukraine, as well as an additional increase in income tax expense related to the disposition of our businesses in Russia.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for the first quarter of 2023 increased $53.7 million, or 30.9%, to $227.5 million compared to the first quarter of 2022.  Charges related to real estate repositioning reduced net income – Omnicom Group Inc. by $91.0 million. Diluted shares outstanding decreased to 204.5 million, or 2.5%, from 209.8 million in the first quarter of 2022 as a result of net share repurchases.  Diluted net income per share of $1.11 increased $0.28, or 33.7%, from $0.83 per share.  Excluding the charges related to real estate repositioning, non-GAAP adjusted diluted earnings per share for the first quarter of 2023 was $1.56.

EBITA
EBITA decreased $6.6 million, or 1.8%, to $365.8 million in the first quarter of 2023 compared to the first quarter of 2022.  The related EBITA margin was 10.6% compared to 10.9% for the first quarter of 2022.   In the first quarter of 2023, non-GAAP adjusted EBITA of $485.0 million decreased 0.2%, and the non-GAAP adjusted EBITA margin was 14.1%.

Risks and Uncertainties
Current global economic challenges, including the war in Ukraine, high and sustained inflation, rising interest rates, supply chain disruptions, credit market deterioration, and other macroeconomic factors, could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We closely monitor economic conditions, 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, April 18, 2023 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. (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 present financial measures determined in accordance with generally accepted accounting principles in the United States (“GAAP”) and adjustments to the GAAP presentation (“Non-GAAP”), which we believe are meaningful for understanding our performance. EBITA is defined as operating income before interest, taxes, and amortization of intangible assets, and EBITA margin is defined as EBITA divided by revenue. 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 arising from acquisitions). We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per diluted share – Omnicom Group Inc. as additional operating performance measures. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow 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 GAAP. Non-GAAP financial measures as 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 war in Ukraine, the lingering effects of the COVID-19 pandemic, high and persistent 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 related 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; and risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives. 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, 2022. 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 March 31 (Unaudited) (In Millions, Except Per Share Data)
	2023	2022
Revenue	$3,443.3	$3,410.3
Operating Expenses:
Salary and service costs	2,542.9	2,491.8
Occupancy and other costs	291.6	300.2
Real estate repositioning costs	119.2	—
Charges arising from the effects of the war in Ukraine	—	113.4
Costs of services	2,953.7	2,905.4
Selling, general and administrative expenses	89.2	96.7
Depreciation and amortization	53.9	55.2
Total operating expenses	3,096.8	3,057.3
Operating Income	346.5	353.0
Interest Expense	54.9	51.0
Interest Income	35.6	8.2
Income Before Income Taxes and Income (Loss) From Equity Method Investments	327.2	310.2
Income Tax Expense	83.4	115.5
Income (Loss) From Equity Method Investments	0.1	(0.1)
Net Income	$243.9	$194.6
Net Income Attributed To Noncontrolling Interests	16.4	20.8
Net Income – Omnicom Group Inc.	$227.5	$173.8
Net Income Per Share – Omnicom Group Inc.
Basic	$1.13	$0.83
Diluted	$1.11	$0.83
Weighted average shares
Basic	202.2	208.3
Diluted	204.5	209.8
Dividends Declared Per Common Share	$0.70	$0.70

SOURCE Omnicom Group Inc.

Omnicom Group Inc. Detail of Operating Expenses Three Months Ended March 31 (Unaudited) (In Millions)
	2023	2022
Operating Expenses:
Salary and service costs
Salary and related service costs	$1,778.0	$1,794.6
Third-party service costs(a)	639.3	581.8
Third-party incidental costs(b)	125.6	115.4
Total salary and service costs	2,542.9	2,491.8
Occupancy and other costs	291.6	300.2
Real estate repositioning costs	119.2	—
Charges arising from the effects of the war in Ukraine	—	113.4
Costs of services	2,953.7	2,905.4
Selling, general and administrative expenses	89.2	96.7
Depreciation and amortization	53.9	55.2
Total Operating Expenses	$3,096.8	$3,057.3

• (a)

  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.

• (b)

  Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs which we bill back to the client directly at our cost and which we are required to include in revenue.

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31 (Unaudited) (In Millions)
	2023	2022
Net Income – Omnicom Group Inc.	$227.5	$173.8
Net Income Attributed To Noncontrolling Interests	16.4	20.8
Net Income	243.9	194.6
Income (Loss) From Equity Method Investments	0.1	(0.1)
Income Tax Expense	83.4	115.5
Income Before Income Taxes and Income From Equity Method Investments	327.2	310.2
Interest Income	35.6	8.2
Interest Expense	54.9	51.0
Operating Income	346.5	353.0
Add back: Amortization of intangible assets	19.3	19.4
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	$365.8	$372.4
Revenue	$3,443.3	$3,410.3
EBITA	$365.8	$372.4
EBITA Margin %	10.6 %	10.9 %

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.

Three Months Ended March 31
	Reported 2023	Non- GAAP Adj.(b)	Non- GAAP 2023 Adj.	Reported 2022	Non- GAAP Adj.(b)	Non- GAAP 2022 Adj.
Revenue	$3,443.3	$—	$3,443.3	$3,410.3	$—	$3,410.3
Operating Expenses	3,096.8	(119.2)	2,977.6	3,057.3	(113.4)	2,943.9
Operating Income	346.5	119.2	465.7	353.0	113.4	466.4
Operating Income Margin %	10.1 %		13.5 %	10.4 %		13.7 %
Add back: Amortization of intangible assets	19.3	—	19.3	19.4	—	19.4
EBITA (a)	$365.8	$119.2	$485.0	$372.4	$113.4	$485.8
EBITA Margin % (a)	10.6 %		14.1 %	10.9 %		14.2 %

• (a)

  See Non-GAAP reconciliation on page 10.

• (b)

  2023 Net Income and Net Income per Share for Omnicom Group Inc. include a $91.0 million after-tax charge on real estate repositioning. 2022 Net Income and Net Income per Share for Omnicom Group Inc. include a $118.2 million after-tax charge arising from the effects of the war in Ukraine.

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, 2023 (Unaudited) (Dollars in Millions, Except Per Share Data)
	Non-GAAP Adjusted
	EBITA	Operating Income
Net Income – Omnicom Group Inc.	$227.5	$227.5
Net Income Attributed To Noncontrolling Interests	16.4	16.4
Net Income	243.9	243.9
Income From Equity Method Investments	0.1	0.1
Income Tax Expense	83.4	83.4
Income Before Income Taxes	327.2	327.2
Net Interest Expense	19.3	19.3
Operating Income – Reported	346.5	346.5
Real estate repositioning costs		119.2
Non-GAAP Operating Income – Adjusted		$465.7
Amortization of Intangible Assets	19.3
EBITA – Reported	365.8
Real estate repositioning costs	119.2
EBITA – Adjusted	$485.0

Three Months Ended March 31, 2023 Non-GAAP Adjusted
	Net Income –Omnicom Group Inc.	Diluted Shares	Net Income per Share – Diluted
Net Income – Omnicom Group Inc. – Reported	$227.5	204.5	$1.11
Real estate repositioning costs	91.0	204.5	0.45
Non-GAAP Net Income – Omnicom Group Inc. – Adjusted	$318.5	204.5	$1.56

Non-GAAP Adjusted Income Tax Expense
Net Income – Omnicom Group Inc.	$227.5
Net Income Attributed To Noncontrolling Interests	16.4
Net Income – Reported	243.9
Income From Equity Method Investments	0.1
Income Tax Expense – Reported	83.4
Income Before Income Taxes	$327.2
Income Tax Expense – Reported	83.4
Income tax expense related to real estate repositioning	28.2
Non-GAAP Income Tax Expense – Adjusted	$111.6

The above tables reconcile the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of EBITA Adjusted, Operating Profit Adjusted, Income Tax Expense Adjusted, Net Income – Omnicom Group Inc. Adjusted and Net Income per share – Diluted Adjusted for the period presented. Management believes excluding the charges arising from real estate repositioning provides investors with a better picture of the performance of the business during the period presented.

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, 2022 (Unaudited) (Dollars in Millions, Except Per Share Data)
	Non-GAAP Adjusted
	EBITA	Operating Income
Net Income – Omnicom Group Inc.	$173.8	$173.8
Net Income Attributed To Noncontrolling Interests	20.8	20.8
Net Income	194.6	194.6
Loss From Equity Method Investments	(0.1)	(0.1)
Income Tax Expense	115.5	115.5
Income Before Income Taxes	310.2	310.2
Net Interest Expense	42.8	42.8
Operating Income – Reported	353.0	353.0
Charges arising from the effects of the war in Ukraine		113.4
Non-GAAP Operating Income – Adjusted		$466.4
Amortization of Intangible Assets	19.4
EBITA – Reported	372.4
Charges arising from the effects of the war in Ukraine	113.4
EBITA – Adjusted	$485.8

Three Months Ended March 31, 2022 Non-GAAP Adjusted
	Net Income –Omnicom Group Inc.	Diluted Shares	Net Income per Share – Diluted
Net Income – Omnicom Group Inc. – Reported	$ 173.8	209.8	$0.83
Charges arising from the effects of the war in Ukraine	118.2	209.8	0.56
Non-GAAP Net Income – Omnicom Group Inc. – Adjusted	$ 292.0	209.8	$ 1.39

Non-GAAP Adjusted Income Tax Expense
Net Income – Omnicom Group Inc.	$173.8
Net Income Attributed To Noncontrolling Interests	20.8
Net Income – Reported	194.6
Loss From Equity Method Investments	(0.1)
Income Tax Expense – Reported	115.5
Income Before Income Taxes	$310.2
Income Tax Expense – Reported	115.5
Income tax expense related to charges arising from the effects of the war in Ukraine	(4.8)
Non-GAAP Income Tax Expense – Adjusted	$110.7

The above tables reconcile the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of EBITA Adjusted, Operating Profit Adjusted, Income Tax Expense Adjusted, Net Income – Omnicom Group Inc. Adjusted and Net Income per share – Diluted Adjusted for the period presented. Management believes excluding the charges arising from the effects of the war in Ukraine provides investors with a better picture of the performance of the business during the period presented.

SOURCE Omnicom Group Inc.

NEW YORK, April 10, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) will publish its first quarter 2023 results on Tuesday, April 18, 2023 after the New York Stock Exchange close of trading. The company will also host a conference call to review the financial results on Tuesday, April 18, 2023 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 1468163. 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.

SOURCE Omnicom Group Inc.

NEW YORK, March 13, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced it has been named Ad Age‘s Holding Company of the Year for the publication’s 2023 A-List and Creativity Awards.

Omnicom was recognized for achieving industry leading organic growth; winning some of the year’s biggest new business pitches (Mercedes, L’Oréal, Restaurant Brands International, and more); strengthening its Omni operating system; progressing on DEI efforts; investing in its talent; refining its portfolio; and producing ground-breaking work.

“This win is a testament to the incredible talent housed within our strong agency brands and specialized practice areas,” said John Wren, Chairman and CEO of Omnicom Group. “Our people across the globe service our clients with unparalleled comradery and innovation, a key reason both new and existing clients trust us with transforming their businesses. We’re proud to see our teams’ efforts and our operational enhancements recognized at such a high level.”

The coveted Ad Age A-List & Creativity Awards honor the forward-thinking leaders, top agencies and creative innovators in the industry today. Only in its second year, the Holding Company of the Year category recognizes a single company that has a standout year based on factors such as financial performance, business wins, company culture, creative prowess and more.

“Omnicom Group earned its reputation from creative agencies such as Bill Bernbach’s DDB, but the holding company has since evolved into a data-driven powerhouse that enables marketers to transform their businesses using its rich capabilities in data, commerce, consumer experience management, CRM—and yes, creativity,” said Ad Age Executive Editor Judann Pollack. “This reinvention has been a new-business magnet for global marketers such as L’Oréal and contributed to robust organic growth. Omnicom has demonstrated its readiness for the contemporary marketing world, leading us to choose it as our 2023 Holding Company of the Year.”

The honor follows a string of other prominent industry accolades Omnicom won this past year, including being named 2022 Holding Company of the Year for both The One Show and the WARC Creative 100 as well as the Most Effective Agency Holding Company in the 2021 Global Effie Effectiveness Index. The company was also named a leader in three 2022 Forrester Wave™ assessments that covered the critical areas of global media management services, marketing creative and content services, and global marketing services.

For more information on Omnicom’s A-List recognition, please visit https://bit.ly/2023AdAgeHoldingCo.

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.

South by Southwest® (SXSW®) Conference and Festival 2023 marks a moment to celebrate tech, music, education and culture that pushes our industry forward. The festival this year takes place on Friday, March 10^th until Sunday, March 19^th and will feature over 350 sessions of globally curated content to ignite conversation and collaboration throughout our industry. 

Omnicom and its agencies will join the conversation with featured speakers from across its networks as well as planned events throughout the event. Learn how to harness your hunger for breakthrough work, rally behind industry diversity efforts and more when you join us this week. View the full schedule here. 

Highlights for the week include: 

Friday, March 10th 

12:00PM | Brand Innovators Marketing Leadership Summit panel with Andrew Teagle, Chief Strategist, GSD&M 

4:00PM | Featured session with Aliah Berman, Chief Diversity Officer, TBWA\Worldwide 

Saturday, March 11th 

2:30PM | “They’re Skipping Your Life’s Work in 6 Seconds” with Brent Anderson, Global Chief Creative Officer, TBWA\Media Arts Lab 

Sunday, March 12th 

1:00PM | “From Start-up to Scale-up” with Les Binet, Group Head of Effectiveness, adam&eveDDB 

Tuesday, March 14^th 

2:30PM | “Affirming Trans Rights: Actions for Business Leaders” with Terry Young, Founder and CEO, sparks & honey 

Wednesday, March 15^th 

2:30PM | “How Values-Based Marketing Fuels Travel Now” with Jason Rosario, Chief Diversity, Equity & Inclusion Officer, BBDO and Bettina Geribaldi, SVP, Travel, Hospitality & Leisure, Ketchum 

NEW YORK, March 1, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that it will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, California on Tuesday, March 7, 2023 at 9:50 a.m. Pacific Time. Live and archived webcasts will be available in the investor relations section of www.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.

SOURCE Omnicom Group Inc.

NEW YORK, Feb. 16, 2023 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on April 6, 2023 to Omnicom Group common shareholders of record at the close of business on March 10, 2023.

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.

2022 Fourth Quarter:

Revenue of $3,868.2 million, with organic growth of 7.2%

Operating profit of $642.7 million

Operating profit margin of 16.6%

Diluted earnings per share of $2.09

NEW YORK, Feb. 7, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter and full year ended December 31, 2022.

“Fourth quarter organic revenue growth of 7.2% was stronger than we expected, led by resilient performance across global geographies and continued strength in our faster growing disciplines,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “We enter 2023 in a very strong position, building on last year’s significant new business wins and bringing together creativity, digital technology, and data to create marketing solutions that are responsive to the business transformation needs of our clients. At the same time, we are closely tracking the macroeconomic outlook and are fully prepared to respond appropriately.  We are confident that the flexibility and diversity of our business and the strength of our balance sheet will continue to create value for our shareholders.”

Fourth Quarter 2022 Results

Three Months Ended December 31,

2022	2021
Revenue	$3,868.2	$ 3,855.9
Operating Profit	642.7	622.5
Operating Profit Margin	16.6 %	16.1 %
Interest expense, net	25.9	44.4
Net Income(1)	429.8	416.2
Net Income per Share – Diluted(1)	$2.09	$1.95

• (1)

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

$ in millions, except per share amounts

Revenues
Worldwide revenue growth in the fourth quarter of 2022 compared to the fourth quarter of 2021 was led by an increase in revenue from organic growth of $276.8 million, or 7.2%.  Acquisition revenue, net of disposition revenue, decreased $53.5 million, or 1.4%, 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 $211.0 million, or 5.5%.  Reported total revenue in the fourth quarter of 2022 increased $12.3 million, or 0.3%, to $3,868.2 million.

Organic growth by discipline in the fourth quarter of 2022 compared to the fourth quarter of 2021 was as follows: 6.0% for Advertising & Media, 11.6% for Precision Marketing, 12.7% for Public Relations, 7.2% for Commerce & Brand Consulting, 6.4% for Healthcare, and 17.0% for Experiential. Execution & Support decreased 2.8%.

Organic growth by region in the fourth quarter of 2022 compared to the fourth quarter of 2021 was as follows: 5.6% for the United States, 9.9% for the United Kingdom, 5.1% for the Euro Markets & Other Europe, 6.9% for Asia Pacific, 18.2% for Latin America, 7.3% for Other North America, and 32.6% for the Middle East & Africa.

Expenses
Operating expenses decreased $7.9 million, or 0.2%, to $3,225.5 million compared to the fourth quarter of 2021. The weakening of most foreign currencies against the U.S. Dollar reduced operating expenses in the quarter compared to prior year in line with the percentage reduction from changes in foreign currencies on revenue.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, and third-party service costs.  Salary and service costs decreased $0.1 million to $2,792.0 million.  Salary and related costs decreased $16.4 million, or 0.9%, to $1,853.4 million as the increase related to organic revenue growth and increased headcount was offset by the effects of foreign currency translation. Third-party service costs increased $16.3 million, or 1.8%, to $938.6 million primarily due to an increase in organic revenue.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $17.2 million, or 6.2%, to $294.4 million, due to an increase in general office expenses resulting from the return of our workforce to the office, partially offset by lower rent.

SG&A expenses decreased $25.4 million to $84.5 million, primarily due to lower professional fees, lower marketing related costs, and reductions from the effects of foreign currency translation.

Operating Profit
Operating profit increased $20.2 million, or 3.2%, to $642.7 million compared to the fourth quarter of 2021.  The related operating profit margin was 16.6% compared to 16.1% for the fourth quarter of 2021.

Interest Expense, net
Net interest expense in the fourth quarter of 2022 decreased $18.5 million to $25.9 million compared to the fourth quarter of 2021.  Interest expense increased $2.8 million to $54.4 million, and interest income increased $21.3 million to $28.5 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 26.5% in the fourth quarter of 2022 increased from 23.1% in the fourth 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 fourth quarter of 2022 increased $13.6 million, or 3.3%, to $429.8 million compared to the fourth quarter of 2021.  Diluted shares outstanding decreased to 205.2 million, or 3.8%, from 213.3 million as a result of net share repurchases.  Diluted net income per share of $2.09 increased $0.14, or 7.2%, from $1.95 per share.

EBITA
EBITA increased $20.0 million, or 3.1%, to $662.7 million compared to the fourth quarter of 2021.  The related EBITA margin was 17.1% compared to 16.7% for the fourth quarter of 2021.

Full Year 2022 Results

Twelve Months Ended December 31,

2022	2021
Revenue	$14,289.1	$14,289.4
Operating Profit	2,083.3	2,197.9
Operating Profit Margin	14.6 %	15.4 %
Interest expense, net	137.9	209.1
Net Income(1)	1,316.5	1,407.8
Net Income per Share – Diluted(1)	$6.36	$6.53
Adj. Operating Profit (2)	$ 2,196.7	$ 2,147.4
Adj. Operating Profit Margin(2)	15.4 %	15.0 %
Adj. Net Income per Share – Diluted (2)	$6.93	$ 6.39

• (1)

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

• (2)

  See Reconciliations of Non-GAAP Adjustments on pages 12–13.

$ in millions, except per share amounts

Revenues
Worldwide revenue growth in 2022 compared to 2021 was led by an increase in revenue from organic growth of $1,346.3 million, or 9.4%.  Acquisition revenue, net of disposition revenue, was a decrease of $665.6 million, or 4.7%, primarily 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 $681.0 million, or 4.8%.  Reported total revenue in 2022 decreased $0.3 million to $14,289.1 million.

Organic growth by discipline in 2022 compared to 2021 was as follows: 7.3% for Advertising & Media, 17.1% for Precision Marketing, 13.7% for Public Relations, 10.7% for Commerce & Brand Consulting, 7.1% for Healthcare, 4.0% for Execution & Support, and 26.1% for Experiential.

Organic growth by region in 2022 compared to 2021 was as follows: 8.7% for the United States, 10.9% for the United Kingdom, 9.7% for the Euro Markets & Other Europe, 6.6% for Asia Pacific, 14.1% for Latin America, 9.2% for Other North America, and 33.2% for the Middle East & Africa.

Expenses
Operating expenses in 2022 increased $114.3 million, or 0.9%, to $12,205.8 million compared to 2021. In 2022, operating expenses include charges arising from the effects of the war in Ukraine of $113.4 million. In 2021, operating expenses were favorably impacted by a $50.5 million gain recorded in connection with dispositions in the Advertising & Media discipline. The weakening of most foreign currencies against the U.S. Dollar reduced operating expenses for 2022 as compared to the prior year in line with the percentage reduction from changes in foreign currencies on revenue.

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 $76.1 million, or 0.7%, to $10,325.9 million.  Salary and related costs increased $226.9 million, or 3.3%, to $7,197.9 million due to organic revenue growth and increased headcount. Third-party service costs decreased $303.0 million, or 8.8%, to $3,128.0 million due primarily to 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.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $20.4 million, or 1.8%, to $1,168.6 million, due to an increase in general office expenses resulting from the return of our workforce to the office, partially offset by lower rent and other occupancy costs.

SG&A expenses decreased $1.2 million, or 0.3%, to $378.5 million.

Operating Profit
Operating profit in 2022 decreased $114.6 million, or 5.2%, to $2,083.3 million compared to 2021.  The related operating profit margin was 14.6% in 2022 compared to 15.4% in 2021.  Operating profit and operating profit margin in 2022 include $113.4 million in charges related to the effects of the war in Ukraine. Operating profit and operating profit margin for 2021 were favorably impacted by the $50.5 million gain recorded in connection with dispositions in the Advertising & Media discipline. Non-GAAP Adjusted operating profit increased 2.3%, and the related margin increased to 15.4% from 15.0%.

Interest Expense, net
Net interest expense in 2022 decreased $71.2 million to $137.9 million compared to 2021.  Interest expense decreased $27.8 million to $208.6 million, and interest income increased $43.4 million to $70.7 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 28.1% in 2022 increased from 24.6% in 2021.  The higher effective tax rate for 2022 was primarily due to the result of the non-deductibility of $113.4 million in charges recorded in the first quarter of 2022 arising from the effects of the war in Ukraine, as well as an additional increase in income tax expense of $4.8 million related to the disposition of our businesses in Russia. These charges were partially offset by the tax benefit arising from our share-based compensation awards. The effective tax rate for 2021 reflects a nominal tax applied to the book gain on the disposition in the Advertising & Media discipline resulting from the excess of tax over book basis and a reduction in income tax expense of $32.8 million primarily related to the favorable settlements of uncertain tax positions in certain jurisdictions.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for 2022 decreased $91.3 million, or 6.5%, to $1,316.5 million compared to 2021. Diluted shares outstanding decreased to 207.0 million, or 4.0%, from 215.6 million as a result of net share repurchases.  Diluted net income per share of $6.36 decreased $0.17, or 2.6%, from $6.53 per share.  Non-GAAP adjusted diluted earnings per share for 2022 increased 8.5% to $6.93 from $6.39.

EBITA
EBITA decreased $114.3 million, or 5.0%, to $2,163.6 million compared to 2021.  The related EBITA margin was 15.1% compared to 15.9% for 2021.  EBITA and EBITA margin in 2022 include $113.4 million in charges related to the effects of the war in Ukraine. Operating profit and operating profit margin for 2021 were favorably impacted by the $50.5 million gain recorded in connection with dispositions in the Advertising & Media discipline.

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, February 7, 2023 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 (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 present financial measures determined in accordance with generally accepted accounting principles in the United States (“GAAP”) and adjustments to the GAAP presentation (“Non-GAAP”), which we believe are meaningful for understanding our performance. We use Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Net Interest Expense, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per diluted share – Omnicom Group Inc. 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. EBITA, is defined as operating profit before interest, taxes, and amortization of intangible assets and EBITA margin, defined as EBITA divided by revenue. 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 arising from acquisitions). Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP. Non-GAAP financial measures as 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 December 31

(Unaudited)
(In Millions, Except Per Share Data)

2022	2021
Revenue	$3,868.2	$3,855.9
Operating Expenses:
Salary and service costs	2,792.0	2,792.1
Occupancy and other costs	294.4	277.2
Costs of services	3,086.4	3,069.3
Selling, general and administrative expenses	84.5	109.9
Depreciation and amortization	54.6	54.2
	3,225.5	3,233.4
Operating Profit	642.7	622.5
Interest Expense	54.4	51.6
Interest Income	28.5	7.2
Income Before Income Taxes and Income From Equity Method Investments	616.8	578.1
Income Tax Expense	163.5	133.6
Income From Equity Method Investments	2.6	5.4
Net Income	455.9	449.9
Net Income Attributed To Noncontrolling Interests	26.1	33.7
Net Income – Omnicom Group Inc.	$429.8	$416.2
Net Income Per Share – Omnicom Group Inc.
Basic	$ 2.11	$ 1.96
Diluted	$2.09	$1.95
Weighted average shares
Basic	203.9	212.2
Diluted	205.2	213.3
Dividends Declared Per Common Share	$ 0.70	$ 0.70

Omnicom Group Inc.

Consolidated Statements of Income

Twelve Months Ended December 31

(Unaudited)
(In Millions, Except Per Share Data)

2022	2021
Revenue	$ 14,289.1	$14,289.4
Operating Expenses:
Salary and service costs	10,325.9	10,402.0
Occupancy and other costs	1,168.6	1,148.2
Charges arising from the effects of the war in Ukraine	113.4	—
Gain on disposition of subsidiary	—	(50.5)
Costs of services	11,607.9	11,499.7
Selling, general and administrative expenses	378.5	379.7
Depreciation and amortization	219.4	212.1
	12,205.8	12,091.5
Operating Profit	2,083.3	2,197.9
Interest Expense	208.6	236.4
Interest Income	70.7	27.3
Income Before Income Taxes and Income From Equity Method Investments	1,945.4	1,988.8
Income Tax Expense	546.8	488.7
Income From Equity Method Investments	5.2	7.5
Net Income	1,403.8	1,507.6
Net Income Attributed To Noncontrolling Interests	87.3	99.8
Net Income – Omnicom Group Inc.	$ 1,316.5	$1,407.8
Net Income Per Share – Omnicom Group Inc.
Basic	$6.40	$6.57
Diluted	$6.36	$6.53
Weighted average shares
Basic	205.6	214.3
Diluted	207.0	215.6
Dividends Declared Per Common Share	$2.80	$2.80

Omnicom Group Inc.

Detail of Operating Expenses

Three Months Ended December 31

(Unaudited)
(In Millions)

2022	2021
Operating Expenses:
Salary and service costs
Salary and related service costs	$1,853.4	$1,869.8
Third-party service costs	938.6	922.3
	2,792.0	2,792.1
Occupancy and other costs	294.4	277.2
Cost of services	3,086.4	3,069.3
Selling, general and administrative expenses	84.5	109.9
Depreciation and amortization	54.6	54.2
Total Operating Expenses	$ 3,225.5	$3,233.4

Omnicom Group Inc.

Detail of Operating Expenses

Twelve Months Ended December 31

(Unaudited)
(In Millions)

2022	2021
Operating Expenses:
Salary and service costs
Salary and related service costs	$7,197.9	$6,971.0
Third-party service costs	3,128.0	3,431.0
	10,325.9	10,402.0
Occupancy and other costs	1,168.6	1,148.2
Charges arising from the effects of the war in Ukraine	113.4	—
Gain on sale of subsidiary	—	(50.5)
Cost of services	11,607.9	11,499.7
Selling, general and administrative expenses	378.5	379.7
Depreciation and amortization	219.4	212.1
Total Operating Expenses	$12,205.8	$12,091.5

Omnicom Group Inc.

Reconciliation of Non-GAAP Financial Measures

Three Months Ended December 31

(Unaudited)
(In Millions)

2022	2021
Net Income – Omnicom Group Inc.	$429.8	$ 416.2
Net Income Attributed To Noncontrolling Interests	26.1	33.7
Net Income	455.9	449.9
Income From Equity Method Investments	2.6	5.4
Income Tax Expense	163.5	133.6
Income Before Income Taxes and Income From Equity Method Investments	616.8	578.1
Interest Income	28.5	7.2
Interest Expense	54.4	51.6
Operating Profit	642.7	622.5
Add back: Amortization of intangible assets	20.0	20.2
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	$ 662.7	$642.7
Revenue	$3,868.2	$3,855.9
EBITA	$ 662.7	$642.7
EBITA Margin %	17.1 %	16.7 %

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.

Omnicom Group Inc.

Reconciliation of Non-GAAP Financial Measures

Twelve Months Ended December 31

(Unaudited)
(In Millions)

2022	2021
Net Income – Omnicom Group Inc.	$1,316.5	$1,407.8
Net Income Attributed To Noncontrolling Interests	87.3	99.8
Net Income	1,403.8	1,507.6
Income From Equity Method Investments	5.2	7.5
Income Tax Expense	546.8	488.7
Income Before Income Taxes and Income From Equity Method Investments	1,945.4	1,988.8
Interest Expense	208.6	236.4
Interest Income	70.7	27.3
Operating Profit	2,083.3	2,197.9
Add back: Amortization of intangible assets	80.3	80.0
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	$2,163.6	$2,277.9
Revenue	$14,289.1	$14,289.4
EBITA	$ 2,163.6	$ 2,277.9
EBITA Margin %	15.1 %	15.9 %

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.

Omnicom Group Inc.

Reconciliation of Non-GAAP Adjustments

Twelve Months Ended December 31

(Unaudited)
(In Millions)

Full Year

Reported 2022	Non-GAAP Adjustments	Non-GAAP Adjusted 2022	Reported 2021	Non-GAAP Adjustments	Non-GAAP Adjusted 2021
Revenue	$14,289.1	$—	$14,289.1	$14,289.4	$—	$14,289.4
Operating Expenses((a)(c)	12,205.8	(113.4)	12,092.4	12,091.5	50.5	12,142.0
Operating Profit	2,083.3	113.4	2,196.7	2,197.9	(50.5)	2,147.4
Operating Margin %	14.6 %		15.4 %	15.4 %		15.0 %
Net Interest Expense (b)	137.9	—	137.9	209.1	(26.6)	182.5
Income Tax Expense(b)(c)	546.8	(4.8)	542.0	488.7	7.1	495.8
Income from Equity Method Investments	5.2	—	5.2	7.5	—	7.5
Net Income Attributed to Noncontrolling Interests	87.3	—	87.3	99.8	—	99.8
Net Income – Omnicom Group Inc.(c)(d)	$1,316.5	$118.2	$1,434.7	$1,407.8	$(31.0)	$1,376.8
Diluted Shares	207.0	—	207.0	215.6	—	215.6
Net Income per Share – Diluted(d)	$ 6.36	$0.57	$6.93	$6.53	$(0.14)	$6.39
Dividends Declared Per Common Share	$2.80	$ —	$2.80	$2.80	$ —	$2.80

• (a)

  Full Year 2021 Operating expenses and Net Income – Omnicom Group Inc. include $50.5 million related to a gain on the disposition of a subsidiary in the second quarter of 2021.

• (b)

  Full Year 2021 Net interest expense includes a $26.6 million pre-tax charge ($19.5 million after-tax) on the early extinguishment of debt in the second quarter of 2021.

• (c)

  In the first quarter of 2022, we recorded a pre-tax charge of $113.4 million in Operating Expenses related to the effects of the war in Ukraine, resulting in an additional $4.8 million of Income tax expense.

• (d)

  The combined effect of the after-tax gain from the disposition in the Advertising & Media discipline and the loss on the early redemption of the 2022 Notes increased Net income – Omnicom Group Inc. for 2021 by $31.0 million and Net Income per Share- Diluted by $0.14.

The above table reconciles the nearest U.S. GAAP financial measures to Non-GAAP Adjusted financial measures.  We believe Non-GAAP Adjusted financial measures are useful for investors to evaluate the performance of our business.

SOURCE Omnicom Group Inc.

NEW YORK, Jan. 30, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) will publish its fourth quarter and full year 2022 results on Tuesday, February 7, 2023 after the New York Stock Exchange closes. The company will also host a conference call to review the financial results on Tuesday, February 7, 2023 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 1468163. The conference call will be simulcast and archived on Omnicom’s 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.