Thu, Jul. 14, 12:08 PM
- Ad giant Omnicom Group (NYSE:OMC) is off 1.6% after a revenue miss in its Q2 earnings report.
- Net income rose 7.9% to $1.36/share, though, and organic revenue growth outpaced a negative impact from foreign exchange rates. EBITA rose 4.3% to $590.3M, and EBITA margin (compared to total revenue) rose to 15.2% from a year-ago 14.9%.
- Organic revenue by discipline: Advertising, +7.7%; Public relations, +0.1%; Specialty Communications, +4.4%; CRM, -2.7%.
- Organic revenue growth in regions: North America, 3.2%; United Kingdom, 3.3%; Euro Markets and Other Europe, 4.3%; Asia Pacific, 4.5%; Latin America, 1.7%; Middle East and Africa, -1.2%.
- Conference call link
- Press Release
Tue, Feb. 9, 8:38 PM
- After a bruising wave of media reviews shook up advertising giants and their valued accounts in 2015, Omnicom (NYSE:OMC) chief John Wren says it's too soon to tell whether 2016 will bring a repeat.
- He was speaking on the company's earnings call after the company beat earnings expectations and grew organic revenue. Omnicom closed today up 2.7%.
- “Whether the pace of 2015 continues into 2016 it is too early to say, but we will not be surprised if the patterns continue,” Wren said.
- Publicis Groupe (OTCQX:PUBGY) went into 2015's reviews with the most to lose, defending billions of dollars in bookings, and Omnicom was the one that took the biggest one from Publicis in grabbing the bulk of media planning and buying for Procter & Gamble.
- CFO Phil Angelastro suggested that the company's M&A activity may pick up: “To the extent we can find acquisitions that fit strategically, culturally and pricing makes sense, we’re going to continue to look to do more acquisitions rather than less."
- Previously: Omnicom +3.3% after growth in profits, organic revenue (Feb. 09 2016)
Tue, Feb. 9, 10:24 AM
- Omnicom (NYSE:OMC) is up 3.3% after its Q4 beat on the bottom line as profits grew nearly 4% and revenues grew despite currency challenges.
- Worldwide revenue fell 1%; organically, revenue grew 4.8%, but was reduced by acquisitions (decline of 0.2% net of dispositions) and a 5.6% decrease due to impact of foreign exchange.
- EBITA fell 0.9% in Q4 to $604M; EBITA margin of 14.5% was unchanged from the prior year.
- Regional organic revenue breakout: North America, up 4.7%; UK, up 4.9%; Euro Markets and Other Europe, up 3.5%; Asia Pacific, up 8.6%; Latin America, up 0.4%; Africa/Middle East, up 5%.
- Q4 By discipline: Advertising up 12.6%; CRM down 1.5%; public relations down 6.9%; specialty communications down 5.9%.
- Conference call link
- Press Release
Dec. 7, 2015, 12:07 PM
- Ad giant Omnicom (NYSE:OMC) has jumped 1.8% as it's taking over most of the media buying and planning for Procter & Gamble, taking a significant chunk of business from Publicis Groupe (OTCQX:PUBGY +0.3%).
- Publicis' Starcom Mediavest Group handled most of P&G's North American media; Omnicom reportedly didn't have any of the consumer-products giant's business previously.
- It's not entirely unexpected but still a blow to Publicis, which went into an unusually heavy review period this summer with the most to lose among its peers.
- Billings up for review this year were more than the past three years combined; the P&G account has been one of the most heavily watched pitches, as the company is the world's biggest ad spender.
- Previously: Publicis +2.3%, sets major restructuring into four hubs for 2016 (Dec. 03 2015)
- Previously: Volatile summer for ad agencies with $26B under review (Jun. 12 2015)
Oct. 20, 2015, 9:31 AM
- Omnicom (NYSE:OMC) is up 1.5% after beating expectations with Q3 results where organic revenues grew more than 6% and strength in North America and Europe made up for weakness in Latin America.
- Excluding acquisitions/dispositions and currency effects, revenues were up 6.1%; foreign exchange rates had a negative impact of 7.2%.
- Organic ad revenue was up 9.9% and specialty communications up 5.4%, while CRM increased 2.8%. Public relations revenue fell 1.5%.
- Regionally, organic revenues were up 6.3% in North America and 9.1% in the UK. It increased 4.5% in Euro markets/other Europe, 8.6% in Asia Pacific and 0.4% in Africa/Middle East, while falling 6.9% in Latin America.
- EBITA fell to $454.7M (down 1.3%) with margin of 12.3% (unchanged).
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)
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).
Nov. 2, 2014, 6:33 PM
- A deal to buy Sapient (NASDAQ:SAPE) could be announced as soon as Monday.
- Publicis' (OTC:PBCBF, OTCPK:PGPEF, OTCQX:PUBGY) planned merger with Omnicom (NYSE:OMC) fell apart in May, and its sales growth has slowed recent quarters.
- With Sapient, Publicis would add a more digital-focus to its traditional creative business. CEO Maurice Levy has said he wants Publicis to more closely resemble "an internet company."
- SAPE's market cap is $2.5B; its revenue was $1.26B last year.
May 8, 2014, 7:27 PM
- Advertising giants Omnicom (OMC) and Publicis (PUBGY) have called off their $35B merger, WSJ reports.
- The "merger of equals" had been challenged by difficulties in getting tax and other regulatory approvals, as well as differences over which executives would fill top roles and which company would be listed as the legal acquirer of the other (earlier).
Jul. 29, 2013, 1:21 PM
- Shares of Omnicom (OMC +0.9%) have fallen back quite a bit after trading over $70 earlier in the day following news of its mega-merger with Publicis.
- At first blush, the deal looks like a way to create synergies through scale, but Simulmedia's Dave Morgan has a different take. He notes that while TV networks might see some pressure on ad rates from the combination of the two ad firms, the auction-based nature of online media advertising will dampen the impact of scale.
- Other analysts think regulators in the U.S. and Europe could create an issue for the combined company.
Jul. 29, 2013, 9:16 AM
Jan. 30, 2012, 10:56 AM
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
Industry: Advertising Agencies
Country: United States
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