Omnicom Reports Fourth Quarter and Full Year 2024 Results
Omnicom (NYSE: OMC) reported strong financial results for Q4 and full year 2024. Fourth quarter revenue reached $4.3 billion, with organic growth of 5.2%, while net income increased to $448.0 million with diluted EPS of $2.26 ($2.41 Non-GAAP adjusted).
Full year 2024 performance showed revenue of $15.7 billion, maintaining the 5.2% organic growth rate, with net income of $1,480.6 million and diluted EPS of $7.46 ($8.06 Non-GAAP adjusted). The company demonstrated strong performance across multiple disciplines, with notable organic growth in Media & Advertising (7.1%), Precision Marketing (9.1%), and Public Relations (10.3%) in Q4.
Geographically, the United States led Q4 organic growth at 9.9%, followed by Latin America at 16.1%. The company also announced plans for a proposed acquisition of Interpublic Group, expecting significant revenue and cost synergies from the combination.
Omnicom (NYSE: OMC) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. I ricavi del quarto trimestre hanno raggiunto 4,3 miliardi di dollari, con una crescita organica del 5,2%, mentre il reddito netto è aumentato a 448,0 milioni di dollari con un utile per azione diluito di 2,26 dollari (2,41 dollari aggiustato Non-GAAP).
Le performance dell'intero anno 2024 hanno mostrato ricavi di 15,7 miliardi di dollari, mantenendo il tasso di crescita organica del 5,2%, con un reddito netto di 1.480,6 milioni di dollari e un utile per azione diluito di 7,46 dollari (8,06 dollari aggiustato Non-GAAP). L'azienda ha dimostrato solide performance in più discipline, con una notevole crescita organica in Media & Advertising (7,1%), Precision Marketing (9,1%) e Public Relations (10,3%) nel quarto trimestre.
Geograficamente, gli Stati Uniti hanno guidato la crescita organica del quarto trimestre con un 9,9%, seguiti dall'America Latina con un 16,1%. L'azienda ha anche annunciato piani per un'acquisizione proposta del gruppo Interpublic, prevedendo significative sinergie di ricavi e costi dalla combinazione.
Omnicom (NYSE: OMC) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos del cuarto trimestre alcanzaron 4,3 mil millones de dólares, con un crecimiento orgánico del 5,2%, mientras que el ingreso neto aumentó a 448,0 millones de dólares con un EPS diluido de 2,26 dólares (2,41 dólares ajustados por Non-GAAP).
El rendimiento del año completo 2024 mostró ingresos de 15,7 mil millones de dólares, manteniendo la tasa de crecimiento orgánico del 5,2%, con un ingreso neto de 1.480,6 millones de dólares y un EPS diluido de 7,46 dólares (8,06 dólares ajustados por Non-GAAP). La empresa demostró un rendimiento sólido en múltiples disciplinas, con un notable crecimiento orgánico en Media & Advertising (7,1%), Precision Marketing (9,1%) y Public Relations (10,3%) en el cuarto trimestre.
A nivel geográfico, Estados Unidos lideró el crecimiento orgánico del cuarto trimestre con un 9,9%, seguido de América Latina con un 16,1%. La empresa también anunció planes para una propuesta de adquisición del Grupo Interpublic, esperando sinergias significativas de ingresos y costos de la combinación.
Omnicom (NYSE: OMC)은 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고했습니다. 4분기 매출은 43억 달러에 도달했으며, 유기적 성장률은 5.2%였습니다. 순이익은 4억 4,800만 달러로 증가했으며, 희석 주당순이익(EPS)은 2.26달러였습니다 (비GAAP 조정 시 2.41달러).
2024년 전체 연도 성과는 157억 달러의 매출을 보여 주었으며, 유기적 성장률 5.2%를 유지했습니다. 순이익은 14억 8,060만 달러에 달했고, 희석 EPS는 7.46달러입니다 (비GAAP 조정 시 8.06달러). 이 회사는 여러 분야에서 강력한 성과를 보여 주었으며, 4분기에 Media & Advertising (7.1%), Precision Marketing (9.1%), Public Relations (10.3%)에서 두드러진 유기적 성장을 보였습니다.
지리적으로 미국은 4분기 유기적 성장률이 9.9%로 가장 높았으며, 그 다음은 라틴 아메리카의 16.1%였습니다. 이 회사는 Interpublic Group의 제안된 인수 계획도 발표했으며, 조합을 통해 상당한 수익 및 비용 시너지를 기대하고 있습니다.
Omnicom (NYSE: OMC) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024. Le chiffre d'affaires du quatrième trimestre a atteint 4,3 milliards de dollars, avec une croissance organique de 5,2%, tandis que le bénéfice net a augmenté à 448 millions de dollars avec un BPA dilué de 2,26 dollars (2,41 dollars ajusté Non-GAAP).
Les performances de l'année complète 2024 ont montré un chiffre d'affaires de 15,7 milliards de dollars, maintenant un taux de croissance organique de 5,2%, avec un bénéfice net de 1,4806 milliard de dollars et un BPA dilué de 7,46 dollars (8,06 dollars ajusté Non-GAAP). L'entreprise a démontré de solides performances dans plusieurs disciplines, avec une croissance organique notable dans les secteurs des médias et de la publicité (7,1%), du marketing de précision (9,1%) et des relations publiques (10,3%) au quatrième trimestre.
Géographiquement, les États-Unis ont enregistré la plus forte croissance organique du quatrième trimestre avec 9,9%, suivis par l'Amérique latine avec 16,1%. L'entreprise a également annoncé ses plans pour une acquisition proposée de l'Interpublic Group, s'attendant à des synergies de revenus et de coûts significatives provenant de cette combinaison.
Omnicom (NYSE: OMC) hat starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Der Umsatz im vierten Quartal erreichte 4,3 Milliarden US-Dollar bei einem organischen Wachstum von 5,2%, während der Nettogewinn auf 448 Millionen US-Dollar anstieg und das verwässerte EPS bei 2,26 US-Dollar lag (2,41 US-Dollar Non-GAAP adjustiert).
Die Leistung für das gesamte Jahr 2024 zeigte einen Umsatz von 15,7 Milliarden US-Dollar und hielt die organische Wachstumsrate von 5,2% bei, mit einem Nettogewinn von 1.480,6 Millionen US-Dollar und einem verwässerten EPS von 7,46 US-Dollar (8,06 US-Dollar Non-GAAP adjustiert). Das Unternehmen demonstrierte eine starke Leistung in mehreren Disziplinen, mit bemerkenswertem organischen Wachstum in Media & Advertising (7,1%), Precision Marketing (9,1%) und Public Relations (10,3%) im vierten Quartal.
Geografisch führte die Vereinigte Staaten im vierten Quartal mit einem organischen Wachstum von 9,9%, gefolgt von Lateinamerika mit 16,1%. Das Unternehmen kündigte auch Pläne für eine vorgeschlagene Übernahme der Interpublic Group an und erwartet signifikante Umsatz- und Kostensynergien aus der Kombination.
- Q4 revenue increased 6.4% to $4.3 billion
- Strong organic growth of 5.2% in both Q4 and full year 2024
- Q4 net income rose 5.2% to $448.0 million
- Full year revenue grew 6.8% to $15.7 billion
- Operating income increased 8.1% to $2.27 billion for full year
- Strong regional performance with US organic growth of 9.9% in Q4
- Healthcare segment declined 4.3% in Q4
- Branding & Retail Commerce dropped 11.6% in Q4
- Euro Markets & Other Europe declined 2.1% in Q4
- Net interest expense increased by $35.2 million in 2024
Insights
Omnicom's Q4 2024 results demonstrate robust operational execution and strategic positioning. The 5.2% organic growth achieved both quarterly and annually surpasses industry averages, particularly notable given the challenging macroeconomic environment. The maintained EBITA margin of 16.7% amid inflationary pressures showcases strong cost management.
The disciplinary performance reveals important trends: The stellar growth in Media & Advertising, Precision Marketing and PR indicates successful digital transformation initiatives and strong client demand for integrated services. However, the 4.3% decline in Healthcare and 11.6% drop in Branding & Retail Commerce warrant attention, potentially reflecting post-pandemic normalization and retail sector challenges.
Geographic performance presents a stark contrast between mature and emerging markets. The U.S. market's exceptional 9.9% growth demonstrates strong domestic demand, while the 2.1% decline in Euro Markets suggests ongoing regional challenges. The 16.1% growth in Latin America highlights emerging market opportunities.
The proposed IPG acquisition marks a transformative move. Beyond scale benefits, the combination would create significant data and creative synergies. The 15.5% full-year adjusted EBITA margin provides financial flexibility for integration, while the recent debt refinancing (
The Q4 results reveal significant market share gains in key segments. The 7.1% growth in Media & Advertising outperforms industry benchmarks, suggesting market share expansion in core services. The exceptional performance in Precision Marketing (+9.1%) and PR (+10.3%) reflects successful adaptation to digital-first client demands and increasing corporate communication needs.
Regional performance patterns signal broader industry shifts. The robust U.S. growth indicates strong domestic advertising spending, while varied international performance suggests market-specific challenges and opportunities. The 16.1% growth in Latin America highlights untapped potential in emerging markets.
The proposed IPG merger would create a powerhouse in data-driven marketing solutions. The combined entity's enhanced scale and capabilities could reshape competitive dynamics in the advertising industry, particularly in data analytics and digital transformation services. The maintained margins despite investment in growth initiatives demonstrate operational excellence and pricing power.
2024 Fourth Quarter:
- Revenue of
$4.3 billion 5.2% - Net income of
$448.0 million - Diluted earnings per share of
$2.26 $2.41 - Operating income of
$685.3 million $722.2 million 16.7% margin
2024 Full Year:
- Revenue of
$15.7 billion 5.2% - Net income of
$1,480.6 million - Diluted earnings per share of
$7.46 $8.06 - Operating income of
$2,274.6 million $2,434.5 million 15.5% margin
"With
Fourth Quarter 2024 Results
$ in millions, except per share amounts | Three Months Ended December 31, | |||||
2024 | 2023 | |||||
Revenue | $ 4,322.2 | $ 4,060.9 | ||||
Operating Income | 685.3 | 646.7 | ||||
Operating Income Margin | 15.9 % | 15.9 % | ||||
Net Income1 | 448.0 | 425.7 | ||||
Net Income per Share - Diluted1 | $ 2.26 | $ 2.13 | ||||
Non-GAAP Measures:1 | ||||||
EBITA | 707.6 | 663.3 | ||||
EBITA Margin | 16.4 % | 16.3 % | ||||
Adjusted EBITA | 722.2 | 677.8 | ||||
Adjusted EBITA Margin | 16.7 % | 16.7 % | ||||
Non-GAAP Adjusted Net Income per Share - Diluted | $ 2.41 | $ 2.26 | ||||
1) See notes on page 15. |
Revenue
Revenue in the fourth quarter of 2024 increased
Organic growth by discipline in the fourth quarter of 2024 compared to the fourth quarter of 2023 was as follows:
Organic growth by region in the fourth quarter of 2024 compared to the fourth quarter of 2023 was as follows:
Expenses
Operating expenses increased
Salary and service costs increased
Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased
SG&A expenses decreased
Operating Income
Operating income increased
Interest Expense, net
Net interest expense in the fourth quarter of 2024 increased
Income Taxes
Our effective tax rate for the fourth quarter of 2024 was
Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income - Omnicom Group Inc. for the fourth quarter of 2024 increased
EBITA
EBITA increased
Full Year 2024 Results
$ in millions, except per share amounts | Twelve Months Ended December 31, | |||||
2024 | 2023 | |||||
Revenue | $ 15,689.1 | $ 14,692.2 | ||||
Operating Income | 2,274.6 | 2,104.7 | ||||
Operating Income Margin | 14.5 % | 14.3 % | ||||
Net Income1 | 1,480.6 | 1,391.4 | ||||
Net Income per Share - Diluted1 | $ 7.46 | $ 6.91 | ||||
Non-GAAP Measures:1 | ||||||
EBITA | 2,362.1 | 2,166.5 | ||||
EBITA Margin | 15.1 % | 14.7 % | ||||
Adjusted EBITA | 2,434.5 | 2,293.7 | ||||
Adjusted EBITA Margin | 15.5 % | 15.6 % | ||||
Non-GAAP Adjusted Net Income per Share - Diluted | $ 8.06 | $ 7.64 | ||||
1) See notes on page 15. |
Revenue
Revenue in 2024 increased
Organic growth by discipline in 2024 compared to 2023 was as follows:
Organic growth by region in 2024 compared to 2023 was as follows:
Expenses
Operating expenses increased
Salary and service costs increased
Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased
SG&A expenses increased
Operating Income
Operating income increased
Interest Expense, net
Net interest expense in 2024 increased
Income Taxes
Our effective tax rate in 2024 was unchanged year-over-year at
Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income - Omnicom Group Inc. for 2024 increased
EBITA
EBITA increased
Risks and Uncertainties
Global economic 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 and labor and supply chain challenges 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
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 Call
Omnicom will host a conference call to review its financial results on Tuesday, February 4, 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, investor.omnicomgroup.com, and a webcast replay will be made available after the call concludes.
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, Lead Responsibly.
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 www.omnicomgroup.com.
Non-GAAP Financial Measures
We present financial measures determined in accordance with generally accepted accounting principles in
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 position, or otherwise, based on current beliefs of the Company's management as well as assumptions made by, and information currently available to, the Company's management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "should," "would," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company's control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: the risks relating to the pending 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; 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, including those caused by geopolitical events, international hostilities, acts of terrorism, public health crises, high and sustained inflation in countries that comprise our major markets, high interest rates, and labor and 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 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; 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 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 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.
ADDITIONAL INFORMATION ABOUT THE TRANSACTION WITH IPG AND WHERE TO FIND IT
In connection with the proposed transaction, Omnicom and IPG have filed a joint proxy statement with the SEC on January 17, 2025 and Omnicom has filed with the SEC a registration statement on Form S-4 on January 17, 2025 (File No. 333-284358) ("Form S-4") that includes the joint proxy statement of Omnicom and IPG and that also constitutes a prospectus of Omnicom. Each of Omnicom and IPG may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that Omnicom or IPG may file with the SEC. The definitive joint proxy statement/prospectus have been mailed to stockholders of Omnicom and IPG. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN AND MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OMNICOM, IPG AND THE PROPOSED TRANSACTION.
Investors and security holders are able to obtain free copies of the registration statement and joint proxy statement/prospectus and other documents containing important information about Omnicom, IPG and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the registration statement and joint proxy statement/prospectus and other documents (if and when available) filed with the SEC by Omnicom may be obtained free of charge on Omnicom's website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx or, alternatively, by directing a request by mail to Omnicom's Corporate Secretary at Omnicom Group Inc., 280 Park Avenue,
PARTICIPANTS IN THE SOLICITATION
Omnicom, IPG and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Omnicom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Omnicom's Annual Report on Form 10-K, including under the heading "Information About Our Executive Officers," and proxy statement for Omnicom's 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 28, 2024, including under the headings "Executive Compensation," "Omnicom Board of Directors," "Directors' Compensation for Fiscal Year 2023" and "Stock Ownership Information." To the extent holdings of Omnicom common stock by the directors and executive officers of Omnicom have changed from the amounts reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 ("Form 3"), Statements of Changes in Beneficial Ownership on Form 4 ("Form 4") or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 ("Form 5"), subsequently filed by Omnicom's directors and executive officers with the SEC. Information about the directors and executive officers of IPG, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in IPG's Annual Report on Form 10-K, including under the heading "Executive Officers of the Registrant," and proxy statement for IPG's 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, including under the headings "Board Composition," "Non-Management Director Compensation," "Executive Compensation" and "Outstanding Shares and Ownership of Common Stock." To the extent holdings of IPG common stock by the directors and executive officers of IPG have changed from the amounts reflected therein, such changes have been or will be reflected on Forms 3, Forms 4 or Forms 5, subsequently filed by IPG's directors and executive officers with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the registration statement and joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the registration statement and joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein from Omnicom or IPG using the sources indicated above.
OMNICOM GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts) | ||||||||
Three Months Ended December 31, | Full Year | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenue | $ 4,322.2 | $ 4,060.9 | $ 15,689.1 | $ 14,692.2 | ||||
Operating Expenses: | ||||||||
Salary and service costs | 3,143.8 | 2,954.0 | 11,432.5 | 10,701.2 | ||||
Occupancy and other costs | 320.5 | 290.9 | 1,274.4 | 1,168.8 | ||||
Real estate and other repositioning costs1 | — | — | 57.8 | 191.5 | ||||
Gain on disposition of subsidiary1 | — | — | — | (78.8) | ||||
Cost of services | 3,464.3 | 3,244.9 | 12,764.7 | 11,982.7 | ||||
Selling, general and administrative expenses | 112.3 | 115.6 | 408.1 | 393.7 | ||||
Depreciation and amortization | 60.3 | 53.7 | 241.7 | 211.1 | ||||
Total operating expenses1 | 3,636.9 | 3,414.2 | 13,414.5 | 12,587.5 | ||||
Operating Income | 685.3 | 646.7 | 2,274.6 | 2,104.7 | ||||
Interest Expense | 65.0 | 52.6 | 247.9 | 218.5 | ||||
Interest Income | 26.9 | 25.8 | 100.9 | 106.7 | ||||
Income Before Income Taxes and Income From Equity Method Investments | 647.2 | 619.9 | 2,127.6 | 1,992.9 | ||||
Income Tax Expense1 | 170.6 | 164.2 | 560.5 | 524.9 | ||||
Income From Equity Method Investments | 2.3 | 2.1 | 6.9 | 5.2 | ||||
Net Income1 | 478.9 | 457.8 | 1,574.0 | 1,473.2 | ||||
Net Income Attributed To Noncontrolling Interests | 30.9 | 32.1 | 93.4 | 81.8 | ||||
Net Income - Omnicom Group Inc.1 | $ 448.0 | $ 425.7 | $ 1,480.6 | $ 1,391.4 | ||||
Net Income Per Share - Omnicom Group Inc.: | ||||||||
Basic | $ 2.28 | $ 2.15 | $ 7.54 | $ 6.98 | ||||
Diluted1 | $ 2.26 | $ 2.13 | $ 7.46 | $ 6.91 | ||||
Dividends Declared Per Common Share | $ 0.70 | $ 0.70 | $ 2.80 | $ 2.80 | ||||
Operating income margin | 15.9 % | 15.9 % | 14.5 % | 14.3 % | ||||
Non-GAAP Measures:4 | ||||||||
EBITA2 | $ 707.6 | $ 663.3 | $ 2,362.1 | $ 2,166.5 | ||||
EBITA Margin2 | 16.4 % | 16.3 % | 15.1 % | 14.7 % | ||||
EBITA - Adjusted1,2 | $ 722.2 | $ 677.8 | $ 2,434.5 | $ 2,293.7 | ||||
EBITA Margin - Adjusted1,2 | 16.7 % | 16.7 % | 15.5 % | 15.6 % | ||||
Non-GAAP Adjusted Net Income Per Share - Omnicom Group Inc. - Diluted1,3 | $ 2.41 | $ 2.26 | $ 8.06 | $ 7.64 | ||||
1) | See Notes 3-5 on page 15. |
2) | See Note 6 on page 15 for the definition of EBITA. |
3) | Beginning with the first quarter of 2024, Adjusted Net Income per Share - Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets. 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 12. |
OMNICOM GROUP INC. AND SUBSIDIARIES DETAIL OF OPERATING EXPENSES (Unaudited) (In millions) | |||||||
Three Months Ended December 31, | Full Year | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 4,322.2 | $ 4,060.9 | $ 15,689.1 | $ 14,692.2 | |||
Operating Expenses: | |||||||
Salary and service costs: | |||||||
Salary and related costs | 1,910.3 | 1,906.1 | 7,441.4 | 7,212.8 | |||
Third-party service costs1 | 1,054.8 | 884.0 | 3,348.6 | 2,917.9 | |||
Third-party incidental costs2 | 178.7 | 163.9 | 642.5 | 570.5 | |||
Total salary and service costs | 3,143.8 | 2,954.0 | 11,432.5 | 10,701.2 | |||
Occupancy and other costs | 320.5 | 290.9 | 1,274.4 | 1,168.8 | |||
Real estate and other repositioning costs3 | — | — | 57.8 | 191.5 | |||
Gain on disposition of subsidiary3 | — | — | — | (78.8) | |||
Cost of services | 3,464.3 | 3,244.9 | 12,764.7 | 11,982.7 | |||
Selling, general and administrative expenses | 112.3 | 115.6 | 408.1 | 393.7 | |||
Depreciation and amortization | 60.3 | 53.7 | 241.7 | 211.1 | |||
Total operating expenses | 3,636.9 | 3,414.2 | 13,414.5 | 12,587.5 | |||
Operating Income | $ 685.3 | $ 646.7 | $ 2,274.6 | $ 2,104.7 | |||
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 Notes 3-5 on page 15. |
OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) | |||||||
Three Months Ended December 31, | Full Year | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net Income - Omnicom Group Inc. | $ 448.0 | $ 425.7 | $ 1,480.6 | $ 1,391.4 | |||
Net Income Attributed To Noncontrolling Interests | 30.9 | 32.1 | 93.4 | 81.8 | |||
Net Income | 478.9 | 457.8 | 1,574.0 | 1,473.2 | |||
Income From Equity Method Investments | 2.3 | 2.1 | 6.9 | 5.2 | |||
Income Tax Expense | 170.6 | 164.2 | 560.5 | 524.9 | |||
Income Before Income Taxes and Income From Equity Method Investments | 647.2 | 619.9 | 2,127.6 | 1,992.9 | |||
Interest Expense | 65.0 | 52.6 | 247.9 | 218.5 | |||
Interest Income | 26.9 | 25.8 | 100.9 | 106.7 | |||
Operating Income | 685.3 | 646.7 | 2,274.6 | 2,104.7 | |||
Add back: amortization of acquired intangible assets and internally developed strategic platform assets1 | 22.3 | 16.6 | 87.5 | 61.8 | |||
Earnings before interest, taxes and amortization of intangible assets ("EBITA")1 | $ 707.6 | $ 663.3 | $ 2,362.1 | $ 2,166.5 | |||
Amortization of other purchased and internally developed software | 4.7 | 4.8 | 18.1 | 18.5 | |||
Depreciation | 33.3 | 32.3 | 136.1 | 130.8 | |||
EBITDA | $ 745.6 | $ 700.4 | $ 2,516.3 | $ 2,315.8 | |||
EBITA | $ 707.6 | $ 663.3 | $ 2,362.1 | $ 2,166.5 | |||
Real estate and other repositioning costs2 | — | — | 57.8 | 191.5 | |||
Gain on disposition of subsidiary2 | — | — | — | (78.8) | |||
Acquisition transaction costs2 | 14.6 | 14.5 | 14.6 | 14.5 | |||
EBITA - Adjusted1,2 | $ 722.2 | $ 677.8 | $ 2,434.5 | $ 2,293.7 | |||
Revenue | $ 4,322.2 | $ 4,060.9 | $ 15,689.1 | $ 14,692.2 | |||
Non-GAAP Measures: | |||||||
EBITA1 | $ 707.6 | $ 663.3 | $ 2,362.1 | $ 2,166.5 | |||
EBITA Margin1 | 16.4 % | 16.3 % | 15.1 % | 14.7 % | |||
EBITA - Adjusted1,2 | $ 722.2 | $ 677.8 | $ 2,434.5 | $ 2,293.7 | |||
EBITA Margin - Adjusted1 | 16.7 % | 16.7 % | 15.5 % | 15.6 % | |||
1) See Note 6 on page 15 for the definition of EBITA. | |
2) See Notes 3-5 on page 15. | |
The above table reconciles the |
OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
Reported | Non- | Non- | Reported | Non- | Non- | |||||||
Revenue | $ 4,322.2 | $ — | $ 4,322.2 | $ 4,060.9 | $ — | $ 4,060.9 | ||||||
Operating Expenses1 | 3,636.9 | (14.6) | 3,622.3 | 3,414.2 | (14.5) | 3,399.7 | ||||||
Operating Income | 685.3 | 14.6 | 699.9 | 646.7 | 14.5 | 661.2 | ||||||
Operating Income Margin | 15.9 % | 16.2 % | 15.9 % | 16.3 % | ||||||||
Full Year | ||||||||||||
Reported | Non- | Non- | Reported | Non- | Non- | |||||||
Revenue | $ 15,689.1 | $ — | $ 15,689.1 | $ 14,692.2 | $ — | $ 14,692.2 | ||||||
Operating Expenses1 | 13,414.5 | (72.4) | 13,342.1 | 12,587.5 | (127.2) | 12,460.3 | ||||||
Operating Income | 2,274.6 | 72.4 | 2,347.0 | 2,104.7 | 127.2 | 2,231.9 | ||||||
Operating Income Margin | 14.5 % | 15.0 % | 14.3 % | 15.2 % | ||||||||
Three Months Ended December 31, | Full Year | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Net | Net Income | Net | Net Income | Net | Net Income | Net | Net Income | ||||
Net Income - Omnicom Group Inc. - Reported | $ 448.0 | $ 2.26 | $ 425.7 | $ 2.13 | $ 1,480.6 | $ 7.46 | $ 1,391.4 | $ 6.91 | |||
Real estate and other repositioning costs1 | — | — | — | — | 42.9 | 0.22 | 145.5 | 0.72 | |||
Gain on disposition of subsidiary1 | — | — | — | — | — | — | (55.9) | (0.28) | |||
Acquisition transaction costs1 | 13.1 | 0.07 | 13.0 | 0.07 | 13.1 | 0.06 | 13.0 | 0.06 | |||
Amortization of acquired intangible assets and internally developed strategic platform assets (after-tax)2 | 16.5 | 0.08 | 12.2 | 0.06 | 64.7 | 0.32 | 45.7 | 0.23 | |||
Non-GAAP Net Income - Omnicom Group Inc. - Adjusted2,3 | $ 477.6 | $ 2.41 | $ 450.9 | $ 2.26 | $ 1,601.3 | $ 8.06 | $ 1,539.7 | $ 7.64 | |||
1) | See Notes 3-5 on page 15. |
2) | Beginning with the first quarter of 2024, Adjusted Net Income per Share - Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets. 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 December 31, 2024 and 2023 were 198.4 million and 199.5 million, respectively. Weighted-average diluted shares for the years ended December 31, 2024 and 2023 were 198.6 million and 201.4 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 12. |
3) | For the twelve months ended December 31, 2024, operating expenses included |
4) | There were no repositioning costs impacting the three months ended December 31, 2024 or the three months ended December 31, 2023. |
5) | For the twelve months ended December 31, 2023, operating expenses included real estate operating lease impairment charges, severance and other exit costs of |
6) | Beginning with the first quarter of 2024, we define EBITA as earnings before interest, taxes and amortization of acquired intangible assets and internally developed strategic platform assets. As a result, we reclassified the prior year periods to be consistent with the revised definition, which reduced EBITA from previously reported amounts. |
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SOURCE Omnicom Group Inc.
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