OMNICOM GROUP., INC. NEW YORK, April 21, 2015 /PRNewswire/ -- Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the first quarter of 2015 increased $3.6 million, or 1.8%, to $209.1 million from $205.5 million in the first quarter of 2014. Diluted net income per common share in the first quarter increased six cents, or 7.8%, to $0.83 per share versus $0.77 per share during the first quarter of 2014.
Omnicom's worldwide revenue in the first quarter of 2015 decreased 0.9% to $3,469.2 million from $3,502.2 million in the first quarter of 2014. Domestic revenue for the first quarter of 2015 increased 4.6% to $1,958.2 million compared to $1,871.8 million in the first quarter of 2014. International revenue decreased 7.3% to $1,511.0 million compared to $1,630.4 million in the first quarter of 2014.
For the quarter ended March 31, 2015, organic growth increased revenue 5.1%, acquisitions, net of dispositions increased revenue 0.4%, while the impact of foreign exchange rates decreased revenue 6.4% when compared to the first quarter of 2014.
Across our regional markets, organic revenue in the first quarter of 2015 increased 4.8% in North America, 9.3% in the United Kingdom, 2.7% in the Euro Markets and Other Europe, 6.7% in Asia Pacific, 3.4% in Latin America and 10.6% in Africa/Middle East, when compared to the same quarter of 2014.
The change in organic revenue in the first quarter of 2015 as compared to the first quarter of 2014 in our four fundamental disciplines was as follows: advertising increased 7.7%, CRM increased 2.6%, public relations increased 3.1% and specialty communications increased 2.6%.
For the first quarter of 2015, Omnicom's earnings before interest, taxes and amortization of intangibles ("EBITA"), a non-GAAP financial measure, decreased $2.1 million, or 0.5%, to $405.0 million from $407.1 million in the first quarter of 2014. Our EBITA margin increased to 11.7% for the first quarter of 2015 versus 11.6% in the first quarter of 2014.
Operating income in the first quarter of 2015 decreased $5.0 million, or 1.3%, to $377.7 million from $382.7 million in the first quarter of 2014. Our operating margin in the first quarter of 2015 of 10.9% was unchanged when compared to the first quarter of 2014.
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. Follow us on Twitter for the latest news.
For a live webcast and/or a replay of our first quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.
Omnicom Group Inc.
Consolidated Statements of Income
Three Months Ended March 31
(Unaudited)
(Dollars in Millions, Except Per Share Data)
2015 2014
---- ----
Revenue $3,469.2 $3,502.2
Operating Expenses, excluding amortization
of intangibles 3,064.2 3,095.1
------- -------
EBITA (a) 405.0 407.1
Less: Amortization of Intangibles 27.3 24.4
---- ----
Operating Income 377.7 382.7
Net Interest Expense 34.2 39.0
---- ----
Income before income taxes 343.5 343.7
Income tax expense 112.7 116.3
Income (Loss) from equity method
investments (1.0) 0.6
---- ---
Net income 229.8 228.0
Less: Net income allocated to
noncontrolling interests 20.7 22.5
---- ----
Net income - Omnicom Group Inc. 209.1 205.5
Less: Net income allocated to
participating securities 2.8 4.1
--- ---
Net income available for common shares $206.3 $201.4
====== ======
Net income per common share - Omnicom
Group Inc.
Basic $0.84 $0.78
Diluted $0.83 $0.77
Weighted average shares (in millions)
Basic 246.4 259.1
Diluted 247.4 261.4
Dividend declared per common share $0.50 $0.40
(a) EBITA (defined as Earnings
before interest, taxes and
amortization of intangibles)
is a non-GAAP measure. We
use EBITA as an additional
operating performance measure,
which excludes the non-cash
amortization expense of
acquired intangible assets. We
believe that EBITA is a useful
measure to evaluate the
performance of our businesses.
Non-GAAP financial measures
should not be considered in
isolation from, or as a
substitute for, financial
information presented in
compliance with U.S. GAAP.
Non-GAAP financial measures
reported by us may not be
comparable to similarly titled
amounts reported by other
companies.
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SOURCE Omnicom Group Inc.
