Latest news with #JohnWren
Yahoo
22-07-2025
- Business
- Yahoo
Omnicom Announces Formation of Omnicom Oceania, Appoints Nick Garrett as CEO
Move aligns all Omnicom operations in ANZ under single leadership New operating model enables group to drive growth through upstream strategy, innovation and a cohesive experience SYDNEY, July 22, 2025 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced the formation of Omnicom Oceania. The move aligns all Omnicom's practice areas across Australia and New Zealand including market leading media and creative agencies, PR, performance marketing, production and more under a unified leadership structure. It reflects Omnicom's commitment to flexibility, innovation, and deep specialization, adapting to an ever-changing landscape and ensuring it delivers the best fit solution for clients. Tapping into Omnicom's significant investment in its Omni platform, Omni AI tools and more, the group has already redefined the market by building high-performance orchestration models such as +61 for Telstra and Smith Street for Coles. "Increasingly, clients in this market are looking for deep specialism and seamless integration. Recent Forrester wave reports have proven that Omnicom is the unrivalled leader across key marketing specializations. We have successfully deployed these specializations with many leading clients in the market, and this organisational shift accelerates our ability to deliver this model to more clients across the region," said John Wren, Omnicom Chairman and CEO. Omnicom Oceania will be led by Nick Garrett as CEO. In his new role, Garrett will collaborate closely with brand agency leaders to deliver integrated solutions and a more seamless experience for Omnicom's clients and their customers. Garrett returns to Omnicom after 4 years at Deloitte Digital where he joined as a Brand & Creative Partner in 2021. Within his first year he joined the Global Leadership team, later becoming Global CMO. Locally and internationally, he drove upstream consulting services at the intersection of creativity, technology and transformation. Before Deloitte, Garrett spent almost a decade leading BBDO agencies, Clemenger and Colenso and, prior to that, worked at TBWA in Sydney and LA. Garrett said, "My time in the consulting world showed me just how big the opportunity is to add creative problem solving and brand thinking further upstream into business strategy, and how agencies can positively influence more of the customer eco-system beyond marketing and comms. There is a huge amount of white space to grow into, and I am absolutely thrilled to be returning to the Omnicom family to continue to drive growth at an accelerated pace." Wren continued, "We have the advantage of best-in-class capabilities and talent across practice areas, built on the foundations of world-leading data, AI, technologies and tools. Nick's deep knowledge of Omnicom and his advisory experience make him the ideal leader to orchestrate these capabilities and drive the growth ambitions of our clients." The move will see Garrett reporting into Wren, and the changes are effective immediately. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom's iconic agency brands are home to the industry's most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit View original content: SOURCE Omnicom Group Inc.
Yahoo
16-07-2025
- Business
- Yahoo
Omnicom Group (OMC) Stock Trades Up, Here Is Why
What Happened? Shares of global advertising giant Omnicom Group (NYSE:OMC) jumped 4% in the afternoon session after the company reported second-quarter earnings and revenue that surpassed analyst expectations. The company announced a non-GAAP adjusted earnings per share of $2.05, which was $0.03 higher than the consensus estimate of $2.02. Revenue for the quarter came in at $4.02 billion, beating the anticipated $3.95 billion. This represented a 4.2% increase in revenue compared to the same period last year. Investors were also encouraged by the company's 3.0% organic revenue growth for the quarter. The solid performance was driven by an 8.2% rise in its Advertising & Media division and a 5% increase in Precision Marketing. In a statement, CEO John Wren pointed to the "resilience and agility" of the business despite ongoing economic uncertainty. The company also confirmed it is on track with its proposed acquisition of rival Interpublic, having already received regulatory approval in 13 of the 18 required jurisdictions, including the United States. After the initial pop the shares cooled down to $73.57, up 3.9% from previous close. Is now the time to buy Omnicom Group? Access our full analysis report here, it's free. What Is The Market Telling Us Omnicom Group's shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 5.2% after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for most countries. This added layer of uncertainty reminded investors that the global trade environment remained volatile, limiting the potential for sustained market gains. Also President Trump said he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn). For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets. Omnicom Group is down 14.9% since the beginning of the year, and at $73.57 per share, it is trading 30.3% below its 52-week high of $105.49 from October 2024. Investors who bought $1,000 worth of Omnicom Group's shares 5 years ago would now be looking at an investment worth $1,308. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
15-07-2025
- Business
- Yahoo
Omnicom Group (NYSE:OMC) Exceeds Q2 Expectations
Global advertising giant Omnicom Group (NYSE:OMC) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 4.2% year on year to $4.02 billion. Its non-GAAP profit of $2.05 per share was 0.8% above analysts' consensus estimates. Is now the time to buy Omnicom Group? Find out in our full research report. Revenue: $4.02 billion vs analyst estimates of $3.97 billion (4.2% year-on-year growth, 1.2% beat) Adjusted EPS: $2.05 vs analyst estimates of $2.03 (0.8% beat) Adjusted EBITDA: $613.8 million vs analyst estimates of $632.7 million (15.3% margin, 3% miss) Operating Margin: 10.9%, down from 13.2% in the same quarter last year Organic Revenue rose 3% year on year (5.2% in the same quarter last year) Market Capitalization: $14.17 billion "We delivered solid 3.0% organic revenue growth this quarter even in the face of ongoing macroeconomic and geopolitical uncertainty - underscoring once again the resilience and agility of our business," said John Wren, Chairman and Chief Executive Officer of Omnicom. With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $15.91 billion in revenue over the past 12 months, Omnicom Group is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's harder to find incremental growth when you've penetrated most of the market. To accelerate sales, Omnicom Group likely needs to optimize its pricing or lean into new offerings and international expansion. As you can see below, Omnicom Group's 2.6% annualized revenue growth over the last five years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Omnicom Group's annualized revenue growth of 5.2% over the last two years is above its five-year trend, suggesting some bright spots. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Omnicom Group's organic revenue averaged 4.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Omnicom Group reported modest year-on-year revenue growth of 4.2% but beat Wall Street's estimates by 1.2%. Looking ahead, sell-side analysts expect revenue to grow 2.6% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Omnicom Group has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average operating margin of 14.5%. Looking at the trend in its profitability, Omnicom Group's operating margin decreased by 1.7 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, Omnicom Group generated an operating margin profit margin of 10.9%, down 2.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Omnicom Group's EPS grew at a solid 9% compounded annual growth rate over the last five years, higher than its 2.6% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. Diving into Omnicom Group's quality of earnings can give us a better understanding of its performance. A five-year view shows that Omnicom Group has repurchased its stock, shrinking its share count by 8.7%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q2, Omnicom Group reported EPS at $2.05, up from $1.95 in the same quarter last year. This print was close to analysts' estimates. Over the next 12 months, Wall Street expects Omnicom Group's full-year EPS of $8.19 to grow 5.9%. It was good to see Omnicom Group narrowly top analysts' revenue and EPS expectations this quarter. On the other hand, its EBITDA missed. Still, this print had some key positives. The stock traded up 2% to $72.25 immediately after reporting. Is Omnicom Group an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
Omnicom Reports Second Quarter 2025 Results
2025 Second Quarter: Revenue of $4.0 billion, with organic growth of 3.0% Net income of $257.6 million; $401.1 million Non-GAAP adjusted Diluted earnings per share of $1.31; $2.05 Non-GAAP adjusted Operating income of $439.2 million; Non-GAAP Adj. EBITA of $613.8 million with 15.3% margin NEW YORK, July 15, 2025 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced results for the quarter ended June 30, 2025. "We delivered solid 3.0% organic revenue growth this quarter even in the face of ongoing macroeconomic and geopolitical uncertainty - underscoring once again the resilience and agility of our business," said John Wren, Chairman and Chief Executive Officer of Omnicom. "Our continued investment in our innovative operating platform, Omni, is driving superior business outcomes for our clients while enhancing operational efficiency across our organization. We also achieved a key milestone in our transformational acquisition of Interpublic, successfully clearing U.S. antitrust review and moving closer to an expected close later this year. As we look ahead, I am more optimistic than ever about the significant growth opportunities this strategic transaction will create for our people, clients, and shareholders." Second Quarter 2025 Results $ in millions, except per share amounts Three Months Ended June 30,2025 2024 Revenue $ 4,015.6 $ 3,853.8Operating Income 439.2 510.3Operating Income Margin 10.9 % 13.2 %Net Income1 257.6 328.1Net Income per Share - Diluted1 $ 1.31 $ 1.65Non-GAAP Measures:1EBITA 459.0 531.8EBITA Margin 11.4 % 13.8 %Adjusted EBITA 613.8 589.6Adjusted EBITA Margin 15.3 % 15.3 %Non-GAAP Adjusted Net Income per Share - Diluted $ 2.05 $ 1.951) See notes on page 11. RevenueRevenue in the second quarter of 2025 increased $161.8 million, or 4.2%, to $4,015.6 million. Worldwide revenue growth in the second quarter of 2025 compared to the second quarter of 2024 was led by an increase in organic revenue of $116.8 million, or 3.0%. Acquisition revenue, net of disposition revenue, increased revenue by $2.6 million, or 0.1%. The impact of foreign currency translation increased revenue by $42.4 million, or 1.1%. Organic growth by discipline in the second quarter of 2025 compared to the second quarter of 2024 was as follows: 8.2% for Media & Advertising, 5.0% for Precision Marketing, 2.9% for Experiential, and 1.5% for Execution & Support, partially offset by declines of 9.3% for Public Relations, 4.9% for Healthcare, and 16.9% for Branding & Retail Commerce. Organic growth by region in the second quarter of 2025 compared to the second quarter of 2024 was as follows: 3.0% for the United States, 2.5% for Euro Markets & Other Europe, 6.5% for Asia Pacific, 18.0% for Latin America, 2.4% for Other North America, and 0.9% for the Middle East & Africa, partially offset by a decline of 2.5% for the United Kingdom. ExpensesOperating expenses increased $232.9 million, or 7.0%, to $3,576.4 million in the second quarter of 2025 compared to the second quarter of 2024. Included in operating expenses in the second quarter of 2025 are $66.0 million of costs related to the pending acquisition of The Interpublic Group of Companies, Inc. ("IPG") and $88.8 million of repositioning costs, primarily related to severance actions related to efficiency initiatives, primarily within the Omnicom Advertising Group and the Omnicom Production Group. Operating expenses in the second quarter of 2024 included $57.8 million of repositioning costs, primarily related to severance. Salary and service costs increased $132.5 million, or 4.7%, to $2,932.6 million. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs and freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs decreased $9.1 million, or 0.5%, to $1,827.8 million, primarily due to our repositioning actions related to severance and changes in our global employee mix, substantially offset by increases related to foreign currency exchange rates. Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party incidental costs that are required to be included in revenue primarily consist of client-related travel and incidental out-of-pocket costs, which are billed back to the client directly at our cost. Third-party service costs increased $107.3 million, or 13.2%, to $918.4 million, primarily as a result of organic growth in our Media & Advertising and Precision Marketing disciplines. Third-party incidental costs increased $34.3 million, or 22.6%, to $186.4 million, primarily as a result of organic growth. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $11.7 million, or 3.7%, to $325.9 million. Increased other occupancy costs were driven in part by negative effects from foreign currency exchange rates and were partially offset by lower rent expense in the period. In the second quarter, as a percentage of revenue, occupancy and other costs decreased as compared to the prior period. SG&A expenses increased $59.4 million, or 53.5%, to $170.4 million. Included in SG&A expenses in the second quarter of 2025 are $66.0 million of acquisition related costs. Operating IncomeOperating income decreased $71.1 million, or 13.9%, to $439.2 million in the second quarter of 2025 compared to the second quarter of 2024, and the related margin decreased to 10.9% from 13.2%. Acquisition related costs and repositioning costs decreased operating margin by 3.9 percentage points in the second quarter of 2025 and repositioning costs decreased operating margin by 1.5 percentage points in the second quarter of 2024. Interest Expense, netNet interest expense in the second quarter of 2025 decreased $1.0 million to $40.7 million compared to the second quarter of 2024. Interest expense decreased $0.1 million to $62.6 million. Interest income increased $0.9 million to $21.9 million, primarily due to higher average cash balances. Income TaxesOur effective tax rate for the second quarter of 2025 increased to 30.2% compared to 26.4% for the second quarter of 2024. The effective tax rate for 2025 increased primarily due to the non-deductibility of certain acquisition related costs in 2025. Net Income – Omnicom Group Inc. and Diluted Net Income per ShareNet income - Omnicom Group Inc. for the second quarter of 2025 decreased $70.5 million, or 21.5%, to $257.6 million compared to the second quarter of 2024. Diluted shares outstanding for the second quarter of 2025 decreased 1.3% to 196.0 million from 198.5 million as a result of net share repurchases. Diluted net income per share of $1.31 decreased $0.34, or 20.6%, from $1.65. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2025 increased $0.10, or 5.1%, to $2.05 from $1.95. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarters of 2025 and 2024 excluded $14.7 million and $15.9 million, respectively, of after-tax amortization of acquired intangible assets and internally developed strategic platform assets. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2025 also excluded $61.6 million of after-tax acquisition related costs and $67.2 million of after-tax repositioning costs. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2024 also excluded $42.9 million of after-tax repositioning costs. We present Non-GAAP Adjusted Net Income per Share - Diluted to allow for comparability with the prior year period. EBITAEBITA decreased $72.8 million, or 13.7%, to $459.0 million in the second quarter of 2025 compared to the second quarter of 2024, and the related margin decreased to 11.4% from 13.8%. Adjusted EBITA increased $24.2 million, or 4.1%, to $613.8 million in the second quarter of 2025 compared to the second quarter of 2024, and the related margin was unchanged at 15.3%. EBITA and Adjusted EBITA excluded amortization of acquired intangible assets and internally developed strategic platform assets of $19.8 million and $21.5 million in the second quarters of 2025 and 2024, respectively. Adjusted EBITA also excluded acquisition related costs of $66.0 million and repositioning costs of $88.8 million in the second quarter of 2025 and repositioning costs of $57.8 million in the second quarter of 2024. Risks and UncertaintiesGlobal economic conditions and disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets 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 and disruptions 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 and disruptions, reductions in client revenue, changes in client creditworthiness and other developments. Definitions - Components of Revenue ChangeWe 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 such 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 CallOmnicom will host a conference call to review its financial results on Tuesday, July 15, 2025, starting at 4:30 p.m. Eastern Time. A live webcast of the call, along with the related slide presentation, will be available at Omnicom's investor relations website, and a webcast replay will be made available after the call concludes. Corporate ResponsibilityAt Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website ( for highlights of our progress across the areas on which we focus: Empower People, Protect Our Planet, Lead Responsibly. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom's iconic agency brands are home to the industry's most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit Non-GAAP Financial MeasuresWe 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 believe these measures are useful in evaluating the impact of certain items on operating performance and allows for comparability between reporting periods. We define EBITA as earnings before interest, taxes, and amortization of acquired intangible assets and internally developed strategic platform 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 acquired intangible assets and internally developed strategic platform assets. 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 share – Omnicom Group Inc. - Diluted as additional operating performance measures. 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 document contain 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 condition, 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: risks relating to the pending merger (the "merger") with IPG, including: that the merger may not be completed in a timely manner or at all; delays, unanticipated costs or restrictions resulting from regulatory review of the merger, including the risk that Omnicom or IPG may be unable to obtain governmental and regulatory approvals required for the merger, or that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger; uncertainties associated with the merger may cause a loss of both companies' management personnel and other key employees, and cause disruptions to both companies' business relationships; the merger agreement subjects the Company and IPG to restrictions on business activities prior to the effective time of the merger; the Company and IPG are expected to incur significant costs in connection with the merger and integration; litigation risks relating to the merger; the business and operations of both companies may not be integrated successfully in the expected time frame; the merger may result in a loss of both companies' clients, service providers, vendors, joint venture participants and other business counterparties; and the combined company may fail to realize all of the anticipated benefits of the merger or fail to effectively manage its expanded operations; adverse economic conditions and disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets; 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 or a deterioration or disruption in the credit markets; the ability to attract new clients and retain existing clients in the manner anticipated; changes in client marketing and communications services requirements; failure to manage potential conflicts of interest between or among clients; unanticipated changes related to competitive factors in the marketing and communications services industries; unanticipated changes to, or the ability to hire and retain, key personnel; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; effective management of the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and related partnerships in our business; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its acquisitions, critical accounting estimates and legal proceedings; the Company's international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and an evolving regulatory environment in high-growth markets and developing countries; and risks related to 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 and in other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. OMNICOM GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts) Three Months Ended June 30,Six Months Ended June 30, 2025202420252024 Revenue$ 4,015.6$ 3,853.8$ 7,706.0$ 7,484.3 Operating Expenses: Salary and service costs2,932.62,800.15,678.95,492.7 Occupancy and other costs325.9314.2640.5628.3 Repositioning costs188.857.888.857.8 Cost of services3,347.33,172.16,408.26,178.8 Selling, general and administrative expenses1170.4111.0288.3196.3 Depreciation and amortization58.760.4117.7120.0 Total Operating Expenses13,576.43,343.56,814.26,495.1 Operating Income439.2510.3891.8989.2 Interest Expense62.662.7121.7116.5 Interest Income21.921.051.648.0 Income Before Income Taxes and Income From Equity Method Investments398.5468.6821.7920.7 Income Tax Expense1120.5123.7241.2239.7 Income From Equity Method Investments(0.2)3.30.74.2 Net Income1277.8348.2581.2685.2 Net Income Attributed To Noncontrolling Interests20.220.135.938.5 Net Income - Omnicom Group Inc.1$ 257.6$ 328.1$ 545.3$ 646.7 Net Income Per Share - Omnicom Group Inc.:1 Basic$ 1.32$ 1.67$ 2.78$ 3.28 Diluted$ 1.31$ 1.65$ 2.77$ 3.24Dividends Declared Per Common Share$ 0.70$ 0.70$ 1.40$ 1.40 Operating income margin 10.9 %13.2 %11.6 %13.2 %Non-GAAP Measures:4 EBITA2$ 459.0$ 531.8$ 933.4$ 1,032.2 EBITA Margin211.4 %13.8 %12.1 %13.8 % EBITA - Adjusted1,2$ 613.8$ 589.6$ 1,122.0$ 1,090.0 EBITA Margin - Adjusted1,215.3 %15.3 %14.6 %14.6 % Non-GAAP Adjusted Net Income Per Share - Omnicom Group Inc. - Diluted1,3$ 2.05$ 1.95$ 3.74$ 3.62 1) See Note 3 on page 11. 2) See Note 4 on page 11 for the definition of EBITA. 3) Adjusted Net Income per Share - Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets and after-tax repositioning costs, and also excludes, for the three and six months ended June 30, 2025, after-tax acquisition related costs. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods. 4) See Non-GAAP reconciliations starting on page 9. OMNICOM GROUP INC. AND SUBSIDIARIES DETAIL OF OPERATING EXPENSES (Unaudited) (In millions) Three Months Ended June 30,Six Months Ended June 30, 2025202420252024 Revenue $ 4,015.6$ 3,853.8$ 7,706.0$ 7,484.3 Operating Expenses:Salary and service costs:Salary and related costs 1,827.81,836.93,608.33,684.2 Third-party service costs1 918.4811.11,715.21,509.3 Third-party incidental costs2 186.4152.1355.4299.2 Total salary and service costs 2,932.62,800.15,678.95,492.7 Occupancy and other costs 325.9314.2640.5628.3 Repositioning costs3 88.857.888.857.8 Cost of services 3,347.33,172.16,408.26,178.8 Selling, general and administrative expenses3 170.4111.0288.3196.3 Depreciation and amortization 58.760.4117.7120.0 Total operating expenses3 3,576.43,343.56,814.26,495.1 Operating Income $ 439.2$ 510.3$ 891.8$ 989.2 1) Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. 2) 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. 3) See Note 3 on page 10. OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions)Three Months Ended June 30,Six Months Ended June 30, 2025202420252024 Net Income - Omnicom Group Inc. $ 257.6$ 328.1$ 545.3$ 646.7 Net Income Attributed To Noncontrolling Interests 20.220.135.938.5 Net Income 277.8348.2581.2685.2 Income From Equity Method Investments (0.2)3.30.74.2 Income Tax Expense 120.5123.7241.2239.7 Income Before Income Taxes and Income From Equity Method Investments 398.5468.6821.7920.7 Interest Expense 62.662.7121.7116.5 Interest Income 21.921.051.648.0 Operating Income 439.2510.3891.8989.2 Add back: amortization of acquired intangible assets and internally developed strategic platform assets1 19.821.541.643.0 Earnings before interest, taxes and amortization of intangible assets ("EBITA")1 $ 459.0$ 531.8$ 933.4$ 1,032.2 Amortization of other purchased and internally developed software 4.04.88.09.1 Depreciation 34.934.168.167.9 EBITDA $ 497.9$ 570.7$ 1,009.5$ 1,109.2 EBITA1 $ 459.0$ 531.8$ 933.4$ 1,032.2 Repositioning costs2 88.857.888.857.8 Acquisition related costs2 66.0—99.8— EBITA - Adjusted1,2 $ 613.8$ 589.6$ 1,122.0$ 1,090.0 Revenue $ 4,015.6$ 3,853.8$ 7,706.0$ 7,484.3 Non-GAAP Measures:EBITA1 $ 459.0$ 531.8$ 933.4$ 1,032.2 EBITA Margin1 11.4 %13.8 %12.1 %13.8 % EBITA - Adjusted1,2 $ 613.8$ 589.6$ 1,122.0$ 1,090.0 EBITA Margin - Adjusted1,2 15.3 %15.3 %14.6 %14.6 % 1) See Note 4 on page 11 for the definition of EBITA. 2) See Note 3 on page 11. The above table reconciles the U.S. GAAP financial measure of Net Income - Omnicom Group Inc. to EBITDA, EBITA, and EBITA - Adjusted. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense of acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITA, EBITA Margin, EBITA - Adjusted, and EBITA Margin - Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year. OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) Three Months Ended June 30,Reported 2025Non-GAAP Adj. (1)Non-GAAP 2025 Adj. Reported 2024Non-GAAP Adj. (1)Non-GAAP 2024 Adj. Revenue $ 4,015.6$ —$ 4,015.6 $ 3,853.8$ —$ 3,853.8Operating Expenses1 3,576.4(154.8)3,421.6 3,343.5(57.8)3,285.7 Operating Income 439.2154.8594.0 510.357.8568.1 Operating Income Margin 10.9 %14.8 % 13.2 %14.7 % Six Months Ended June 30, Reported 2025Non-GAAP Adj. (1)Non-GAAP2025 Adj. Reported 2024Non-GAAPAdj. (1)Non-GAAP 2024 Adj. Revenue $7,706.0$ —$ 7,706.0 $ 7,484.3$ —$ 7,484.3Operating Expenses1 6,814.2(188.6)6,625.6 6,495.1(57.8)6,437.3 Operating Income 891.8188.61,080.4 989.257.81,047.0 Operating Income Margin 11.6 %14.0 % 13.2 %14.0 % Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Net Income Net Income per Share- DilutedNet Income Net Income per Share- DilutedNet Income Net Income per Share- DilutedNet Income Net Income per Share- Diluted Net Income - Omnicom Group Inc. - Reported $ 257.6 $ 1.31$ 328.1 $ 1.65$ 545.3 $ 2.77$ 646.7 $ 3.24 Repositioning costs (after-tax)2 67.2 0.3442.9 0.2267.2 0.3442.9 0.22 Acquisition related costs (after-tax)1,2 61.6 0.32— —94.3 0.48— — Amortization of acquired intangible assets and internally developed strategic platform assets (after-tax)2 14.7 0.0815.9 0.0830.8 0.1531.8 0.16 Non-GAAP Net Income - Omnicom Group Inc. - Adjusted2,3 $ 401.1 $ 2.05$ 386.9 $ 1.95$ 737.6 $ 3.74$ 721.4 $ 3.62 1) See Note 3 on page 11. 2) Adjusted Net Income per Share - Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets and after-tax repositioning costs, and also excludes, for the three and six months ended June 30, 2025, after-tax acquisition related costs. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods. 3) Weighted-average diluted shares for the three months ended June 30, 2025 and 2024 were 196.0 million and 198.5 million, respectively. Weighted-average diluted shares for the six months ended June 30, 2025 and 2024 were 197.1 million and 199.3 million, respectively. The above tables reconcile the GAAP financial measures of Operating Income, Net Income - Omnicom Group Inc., and Net Income per Share - Diluted to adjusted Non-GAAP financial measures of Non-GAAP Operating Income - Adjusted, Non-GAAP Net Income-Omnicom Group Inc. - Adjusted and Non-GAAP Adjusted Net Income per Share - Diluted. Management believes these Non-GAAP measures are useful for investors to evaluate the comparability of the performance of our business year to year. NOTES: 1) Net Income and Net Income per Share for Omnicom Group Inc. 2) See non-GAAP reconciliations starting on page 9. 3) For the three and six months ended June 30, 2025, operating expenses included $88.8 million ($67.2 million after-tax) of repositioning costs recorded in the second quarter of 2025, primarily related to severance actions related to efficiency initiatives. In addition, included in selling, general and administrative expenses for the three and six months ended June 30, 2025, are acquisition related costs of $66.0 million ($61.6 million after-tax) and $99.8 million ($94.3 million after-tax), respectively, related to the pending merger with IPG. The net impact of these items reduced operating income for the three and six months ended June 30, 2025, by $154.8 million ($128.8 million after-tax) and $188.6 million ($161.5 million after-tax), respectively, which reduced diluted net income per share - Omnicom Group Inc. by $0.66 and $0.82, respectively. For the three and six months ended June 30, 2024, operating expenses included $57.8 million ($42.9 million after-tax) of repositioning costs recorded in the second quarter of 2024, primarily related to severance actions related to ongoing efficiency initiatives, including strategic agency consolidation in our smaller international markets and the launch of our centralized production strategy, which reduced diluted net income per share - Omnicom Group Inc. by $0.22. There were no acquisition related costs for the three and six months ended June 30, 2024. 4) We define EBITA as earnings before interest, taxes and amortization of acquired intangible assets and internally developed strategic platform assets. View original content: SOURCE Omnicom Group Inc. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
23-06-2025
- Business
- Yahoo
Omnicom and Interpublic Clear FTC Antitrust Review
NEW YORK, June 23, 2025 /PRNewswire/ -- Omnicom (NYSE: OMC) and Interpublic (NYSE: IPG) today announced that the U.S. Federal Trade Commission (FTC) has concluded its antitrust review of Omnicom's proposed acquisition of Interpublic and reached agreement with Omnicom and IPG on a mutually acceptable consent order. "We are delighted that our transaction with Interpublic has cleared this significant regulatory hurdle," said John Wren, Chairman & CEO of Omnicom. "This is an important step toward the completion of the proposed acquisition and creating a new era in which we help clients grow with a comprehensive range of marketing and sales solutions, incorporating both creativity and technology. We continue to look forward to obtaining the remaining regulatory approvals and closing in the second half of this year, consistent with our expectations when we announced this transaction." "Today's news is a notable step forward in the process of combining our companies and their deep pools of talent, complementary capabilities, and geographic strengths," added Philippe Krakowsky, CEO of Interpublic. "Together with John and as part of his team, we will be exceptionally well-positioned to meet the evolving needs of clients in a consumer and media landscape being transformed by technology and data." With the agreed consent order, which is publicly available on the FTC's website at on June 23, 2025, the FTC granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The consent order is now subject to a 30-day public comment period and then final acceptance by the FTC. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom's iconic agency brands are home to the industry's most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit About IPG Interpublic (NYSE: IPG) ( is a values-based, data-fueled, and creatively driven provider of marketing solutions. Home to some of the world's best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe, Octagon, UM, Weber Shandwick and more. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and the United States Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in this press release, including those that address activities, events or developments that Omnicom or Interpublic expects, believes or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements may be identified by words such as "anticipates," "believes," "continue," "could," "estimate," "expects," "intends," "will," "should," "may," "plan," "potential," "predict," "project," "would" or the negative thereof and similar expressions. No assurances can be given that the forward-looking statements contained in this press release will occur as projected and actual results may differ materially from those included in this press release. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those included in this press release. These risks and uncertainties include, without limitation: remaining regulatory approvals required for the acquisition (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the acquisition); the risk that the conditions imposed by the FTC's consent order could adversely affect the combined company or the expected benefits of the acquisition; the risk that an event, change or other circumstance could result in the termination of the acquisition; the risk that a condition to closing of the acquisition may not be satisfied; the risk of delays in completing the acquisition; the risk that the acquisition may not qualify as a "reorganization" within the meaning of Section 368(a) of the Code as intended; the risk that the businesses will not be integrated successfully or that the integration will be more costly or difficult than expected; the risk that the cost savings and any other synergies from the acquisition may not be fully realized or may take longer to realize than expected; the risk that any announcement or news coverage relating to the acquisition could have adverse effects on the market price of Omnicom common stock or Interpublic common stock; the risk of litigation related to the acquisition; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; the risk that management's time spent on the acquisition and integration may reduce their availability for ongoing business operations and opportunities; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the acquisition; the dilution caused by Omnicom's issuance of additional shares of its capital stock in connection with the acquisition; adverse economic conditions or a deterioration or disruption in the credit markets; the risk of losses on media purchases and production costs; risks related to reductions in spending from Omnicom or Interpublic clients or a slowdown in payments by such clients; risks related to each company's ability to attract new clients and retain existing clients; changes in client advertising, marketing, and corporate communications requirements; risks related to the inability to manage potential conflicts of interest between or among clients of each company; unanticipated changes related to competitive factors in the advertising, marketing, and corporate communications industries; unanticipated changes related to, or an inability to hire and retain, key personnel at either company; currency exchange rate fluctuations; risks related to reliance on information technology systems and risks related to cybersecurity incidents; risks and challenges presented by utilizing artificial intelligence technologies and related partnerships; changes in legislation or governmental regulations; risks associated with assumptions made in connection with critical accounting estimates and legal proceedings; risks related to international operations, including currency repatriation restrictions, social or political conditions and regulatory environment; risks related to environmental, social, and governance goals and initiatives; and other risks inherent in Omnicom's and Interpublic's businesses. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect Omnicom's and Interpublic's businesses, including those described in Omnicom's and Interpublic's respective Annual Reports on Form 10-K and in other documents filed from time to time with the Securities and Exchange Commission. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Except to the extent required by applicable law, neither Omnicom nor Interpublic undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. View original content: SOURCE Omnicom Group Inc. 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