Omnicom Reports Fourth Quarter 2010 Results
NEW YORK, Feb. 15, 2011 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the fourth quarter of 2010 increased 7.4% to $246.5 million from $229.6 million in the fourth quarter of 2009. Omnicom’s diluted net income per common share in the fourth quarter of 2010 increased 13.7% to $0.83 per share from $0.73 per share in the fourth quarter of 2009.
Worldwide revenue increased 9.8% to $3,586.8 million from $3,265.9 million in the fourth quarter of 2009. Domestic revenue for the fourth quarter of 2010 increased 12.6% to $1,836.4 million compared to $1,630.4 million in the fourth quarter of 2009. International revenue increased 7.0% to $1,750.4 million compared to $1,635.5 million in the fourth quarter of 2009.
Omnicom’s net income for the twelve months ended December 31, 2010 increased 4.4% to $827.7 million from $793.0 million in the same period in 2009. Omnicom’s diluted net income per common share for the twelve months ended December 31, 2010 increased 6.7% to $2.70 per share in 2010 from $2.53 per share in the same period in 2009.
Worldwide revenue for the twelve months ended December 31, 2010 increased 7.0% to $12,542.5 million from $11,720.7 million in the same period in 2009. Domestic revenue for the twelve months ended December 31, 2010 increased 8.2% to $6,683.1 million from $6,178.4 million in the same period in 2009. International revenue for the twelve months ended December 31, 2010 increased 5.7% to $5,859.4 million from $5,542.3 million in the same period in 2009.
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.
For a live webcast and/or a replay of our fourth quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.
Omnicom Group Inc.
(Unaudited)
(Dollars in Millions, Except Per Share Data)
Three Months Ended December 31, 2010 2009
------------------------------- ---- ----
Revenue $3,586.8 $3,265.9
Operating expenses, excluding amortization of
intangibles 3,127.0 2,851.2
------- -------
Earnings before interest, taxes and
amortization of intangibles (a) 459.8 414.7
Amortization of intangibles 20.2 15.1
---- ----
Operating income 439.6 399.6
Net interest expense 32.1 28.6
---- ----
Income before income taxes 407.5 371.0
Income tax expense 139.4 124.7
Income from equity method investments 10.4 10.3
---- ----
Net Income 278.5 256.6
Less: Net income attributed to noncontrolling
interests 32.0 27.0
---- ----
Net Income - Omnicom Group Inc. 246.5 229.6
Less: Net income allocated to participating
securities 2.5 2.5
--- ---
Net income available for common shares $244.0 $227.1
====== ======
Net Income per common share - Omnicom Group Inc.
Basic $0.84 $0.74
Diluted $0.83 $0.73
Weighted average shares (in millions)
Basic 290.5 308.9
Diluted 295.7 312.9
Dividend declared per common share $0.20 $0.15
(a) Earnings before interest, taxes and amortization of intangibles
("EBITA") is a non-GAAP financial measure within the meaning of
applicable SEC rules and regulations. Management uses EBITA as an
additional operating performance measure, which excludes acquisition
related amortization expense, because it believes that EBITA is a
useful measure to evaluate the performance of our businesses. EBITA
is not, nor should not be used as a substitute for Operating Income,
as determined in accordance with GAAP.
Omnicom Group Inc.
(Unaudited)
(Dollars in Millions, Except Per Share Data)
Twelve Months Ended December 31, 2010 2009
-------------------------------- ---- ----
Revenue $12,542.5 $11,720.7
Operating expenses, excluding amortization of
intangibles 11,011.5 10,289.5
-------- --------
Earnings before interest, taxes and
amortization of intangibles (a) 1,531.0 1,431.2
Amortization of intangibles 70.8 56.3
---- ----
Operating income 1,460.2 1,374.9
Net interest expense 109.8 100.7
----- -----
Income before income taxes 1,350.4 1,274.2
Income tax expense 460.2 433.6
Income from equity method investments 33.5 30.8
---- ----
Net Income 923.7 871.4
Less: Net income attributed to noncontrolling
interests 96.0 78.4
---- ----
Net Income - Omnicom Group Inc. 827.7 793.0
Less: Net income allocated to participating
securities 8.0 9.1
--- ---
Net income available for common shares $819.7 $783.9
====== ======
Net Income per common share - Omnicom Group
Inc.
Basic $2.74 $2.54
Diluted $2.70 $2.53
Weighted average shares (in millions)
Basic 299.6 308.2
Diluted 303.5 310.4
Dividend declared per common share $0.80 $0.60
(a) Earnings before interest, taxes and amortization of intangibles
("EBITA") is a non-GAAP financial measure within the meaning of
applicable SEC rules and regulations. Management uses EBITA as an
additional operating performance measure, which excludes acquisition
related amortization expense, because it believes that EBITA is a
useful measure to evaluate the performance of our businesses. EBITA
is not, nor should not be used as a substitute for Operating Income,
as determined in accordance with GAAP.
SOURCE Omnicom Group Inc.