Omnicom Group Inc. (OMC) - NYSE
  • Aug. 24, 2015, 10:49 AM
    • Ad agency TBWA Worldwide (OMC -2.6%) is merging Canadian operations, blending TBWA\Toronto and Juniper Park to create Juniper Park\TBWA.
    • Juniper Park's team, led by CEO Jill Nykoliation, will head up the new enterprise, as TBWA\Canada chief Jay Bertram will resign as of September's end to pursue new opportunities.
    • Juniper Park had become an official part of the TBWA network in March. "This merger formalizes a relationship that is well under way," said Nykoliation.
    • The two will combine their client rosters (including companies such as Nissan, Miller Lite, PepsiCo and Pfizer) and will move together under one office roof.
    | Aug. 24, 2015, 10:49 AM
  • Jul. 21, 2015, 4:25 PM
    • In posting Q2 earnings this morning, Omnicom (OMC -1.2%) focused on EPS growth and a rise in organic revenue, but meanwhile earnings call questions covered issues very much on the mind of advertising investors: the changing landscape for advertising, particularly nearly $30B in agency reviews going on now.
    • “We know the media landscape has become more complex and many of the reviews are strategic re-evaluation of agency suppliers,” said CEO John Wren on the call. He pointed to an increase in media outlets and the uptake in online video as reasons advertisers might rethink strategies.
    • The company says it's defending $1.2B in billings and has an upside of $1B more from the accounts. Wren says the cmpany's halfway through pitches and expects big assignments to be decided by October. He also said current clients were first priority, and that Omnicom was sitting out reviews by Twenty-First Century Fox, Citibank, Coke, Coty and L'Oreal.
    • The programmatic trading desk, Accuen, has been a standout, adding about $30M in revenues this quarter, "still somewhat early days."
    • Next up: Interpublic Group (NYSE:IPG) reports in the morning.
    • Previously: Omnicom -1.3% despite beat, as forex issues drive declines in revenue, profit (Jul. 21 2015)
    • Previously: Omnicom kicking off big advertising earnings: What to watch (Jul. 20 2015)
    • Related: Omnicom Group's (NYSE:OMC) CEO John Wren on Q2 2015 Results - Earnings Call Transcript (Jul. 21 2015)
    | Jul. 21, 2015, 4:25 PM
  • Jul. 21, 2015, 10:10 AM
    • Omnicom (NYSE:OMC) is off 1.3% despite the ad giant beating expectations on top and bottom lines, as profits and revenues declined Y/Y in the face of currency fluctuations.
    • Foreign exchange issues dampened what was underlying unit growth in sales. Revenues that fell to $3.81B (down 1.6%) still beat forecasts of $3.76B. Meanwhile, organic revenues rose 5.3%; forex effects were 7.1% to the negative, the company said.
    • Organic revenue change by discipline: Advertising, up 6.4%; CRM, up 4.3%; Public Relations, up 0.3%; Specialty Communications, up 8%.
    • Organic revenue breakdown by region: North America, up 5.9%; UK, up 5.4%; Euro Markets/Other Europe, up 3.9%; Asia Pacific, up 7.6%; Africa/Middle East, up 11.9%; Latin America, down 9.6%.
    • Previously: Omnicom kicking off big advertising earnings: What to watch (Jul. 20 2015)
    | Jul. 21, 2015, 10:10 AM
  • Jul. 21, 2015, 7:02 AM
    • Omnicom (NYSE:OMC): Q2 EPS of $1.26 beats by $0.04.
    • Revenue of $3.81B (-1.6% Y/Y) beats by $50M.
    | Jul. 21, 2015, 7:02 AM
  • Jul. 20, 2015, 8:01 PM
    • Omnicom (NYSE:OMC) reports earnings tomorrow morning, kicking off reports from advertising's big players, including WPP (NASDAQ:WPPGY), Publicis (OTCQX:PUBGY) and Interpublic Group (NYSE:IPG) in a very shaky time for the Avenue, with a record amount of billings under review.
    • Overall, the group is expected to post organic sales growth in low- to mid-single digits.
    • With nearly $30B in spending under review by major advertisers, investors will be on the lookout for any color the agency groups can offer on new business and what it would mean to the bottom line. Publicis in particular is defending more than $7B in billings (EPS risk of 2.3%).
    • As if the reviews weren't enough, there's the evolution of TV upfronts -- increasingly granular data and the advent of over-the-top video is changing the nature of ordering TV ads -- and, as Nathalie Tadena notes, the chatter that rebates (kickbacks) are widespread.
    • Omnicom is expected to post EPS tomorrow morning of $1.20 on revenues of $3.77B (down 2.5% Y/Y), and EBITDA of $601.8M, according to Capital IQ.
    • Previously: Volatile summer for ad agencies with $26B under review (Jun. 12 2015)
    | Jul. 20, 2015, 8:01 PM
  • Jul. 20, 2015, 5:30 PM
    | Jul. 20, 2015, 5:30 PM | 2 Comments
  • Jul. 16, 2015, 5:43 PM
    • Omnicom (NYSE:OMC) declares $0.50/share quarterly dividend, in line with previous.
    • Forward yield 2.72%
    • Payable Oct. 8; for shareholders of record Sept. 22; ex-div Sept. 18.
    | Jul. 16, 2015, 5:43 PM
  • Jun. 30, 2015, 2:26 PM
    • Heineken has chosen Publicis Groupe (OTCQX:PUBGY -0.6%) to take the lead on its global ad campaigns, moving up from a previous support role.
    • Amounts are undisclosed, but Heineken says it's allocating 12.7% of its 2014 sales of €21.2B billion euros ($23.63B) to sales and marketing -- some $3B.
    • It's a welcome win for the France-based group, as it's got key vulnerabilities in a summer with $26B in business under review, defending more than $7B in billings from other big four competitors WPP (WPPGY +0.4%), Interpublic Group (IPG +0.9%) and Omnicom (OMC +0.9%).
    | Jun. 30, 2015, 2:26 PM
  • Jun. 12, 2015, 6:41 PM
    • The coming days are shaping up to be a scramble for real-life Mad men and women, as Morgan Stanley analysts estimate that a staggering $26B in ad spending is under review by major advertisers including Procter & Gamble and Johnson & Johnson -- basically up for grabs by other agency groups.
    • That's more than the last three years put together. Considering agency fees and commissions, that amounts to $700M of those billings that agencies are fighting over.
    • Most vulnerable is Publicis Groupe (OTCQX:PUBGY), defending some $7.2B in billings, which amounts to 1.7% of its revenue and an EPS risk of 2.3%. Interpublic Group (NYSE:IPG) must defend $3.3B (1.2% of revenues, and a 1.9% EPS risk); WPP (NASDAQ:WPPGY) has $8.5B in billings under review (1.1% of revenues, 1.6% EPS risk) and Omnicom Group (NYSE:OMC) is looking at $3B in billings at risk (0.5% of revenues, 0.8% EPS risk).
    • Of those, IPG may have the most to gain (new opportunity of $13.4B, amounting to 4.4% revenue upside).
    • Overall the heavy reviews likely mean new fee pressures as advertisers look to save costs. Morgan Stanley notes that reviews tend to have a deflationary effect on agencies, but some that agree to lower fees might negotiate for higher volume.
    • The analysts aren't sure what comes next -- considering digital expertise and the shakeups happening with ad technology, guessing the outcomes is a "bit of a toss-up.”
    | Jun. 12, 2015, 6:41 PM
  • May 18, 2015, 5:10 PM
    • Omnicom (NYSE:OMC) declares $0.50/share quarterly dividend, in line with previous.
    • Forward yield 2.56%
    • Payable July 10; for shareholders of record June 12; ex-div June 10.
    | May 18, 2015, 5:10 PM
  • Apr. 21, 2015, 9:08 AM
    • Omnicom (NYSE:OMC) posted net income for Q1 that rose 1.8% Y/Y to $209.1M and beat expectations there. EBITDA of $405M was down 0.5% and missed an consensus of $451.2M.
    • A mild revenue slip of 0.9% was bolstered by domestic revenues up 4.6%, while internationally, revenue slipped 7.3%. Overall, organic revenues increased 5.1%, and forex rates pushed revenues 6.4% lower comparing to the prior year.
    • For organic revenues, advertising increased 7.7% Y/Y; CRM increased 2.6%; public relations increased 3.1%; specialty communications increased 2.6%.
    • Operating income was off 1.3% to $377.7M, while operating margin of 10.9% was flat Y/Y.
    | Apr. 21, 2015, 9:08 AM
  • Apr. 21, 2015, 7:01 AM
    • Omnicom (NYSE:OMC): Q1 EPS of $0.83 beats by $0.01.
    • Revenue of $3.47B (-0.9% Y/Y) in-line.
    | Apr. 21, 2015, 7:01 AM
  • Apr. 20, 2015, 5:30 PM
    | Apr. 20, 2015, 5:30 PM | 3 Comments
  • Apr. 13, 2015, 12:05 PM
    • Key ad agency companies are trading lower as Pivotal Research's Brian Wieser downgrades a cadre in large part due to growing blowback about agency rebates ("kickbacks").
    • Recommending that investors "move to sidelines or exit the sector for the time being," Wieser bumped three firms to Sell from Hold: Omnicom (OMC -1.3%); Publicis (OTCQX:PUBGY -1.3%); and WPP (WPPGY -0.6%) and downgraded Interpublic Group (IPG -1.2%) to Hold, from a previous Buy.
    • He noted previous favorable views toward agencies based on the transition to digital advertising, but "we have reassessed our view in recent weeks with growing awareness of the topic of undisclosed agency rebates (aka 'kickbacks') in the United States."
    • Rightly or wrongly, he says, lack of understanding about agency rebates is confusing marketers and clients. WPP may be "most immunized" from the problem, ironically due to its transparency about not being transparent.
    • He has a price target for IPG of $23, down from $24 (trading now at $21.59); and for OMC of $66, down from $71 (now at $77.57).
    | Apr. 13, 2015, 12:05 PM
  • Apr. 8, 2015, 6:06 PM
    • John Wren, CEO of advertising/marketing giant Omnicom (NYSE:OMC), got $24M in total compensation last year, according to the company's latest proxy statement.
    • That's a 33% bump from the prior year, though his base salary is $1M; 95% of his pay is tied to performance.
    • The second-highest paid exec at Omnicom was Philip Angelastro, elevated to the CFO post in September. He received $5M, up from the prior year's $2.4M.
    • Wren's pay still pales in comparison to WPP (NASDAQ:WPPGY) CEO Martin Sorrell, who's set to receive $53M in shares this year, The Wall Street Journal notes.
    | Apr. 8, 2015, 6:06 PM
  • Mar. 30, 2015, 10:42 PM
    • After a quick review, Wells Fargo is in late-stage talks with OMD and Organic (both parts of Omnicom Group (NYSE:OMC)) to expand their relationship and give OMC business that's currently handled by Interpublic Group's (NYSE:IPG) UM.
    • OMD already leads on media planning/buying for Wells Fargo, but it's likely to take on Interpublic's digital and search responsibilities, as well as increasing planning/buying on multicultural ads.
    • Organic is expected to take digital creative business share from Interpublic's MRM.
    • The bank spent more than $170M in media in 2014.
    | Mar. 30, 2015, 10:42 PM
Company Description
Omnicom Group, Inc. is a global marketing and corporate communications company, which provides advertising, marketing and corporate communications services. Its branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive... More
Sector: Services
Industry: Advertising Agencies
Country: United States