Have you evaluated the performance of Omnicom's (OMC) international operations for the quarter ending June 2025? Given the extensive global presence of this advertising company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for inv ...

Key Takeaways OMC's Q2 EPS rose 5.1% to $2.05, beating estimates by 1.5%, revenues grew 4.2% to $4B, up 1.6% over forecast. Adjusted EBITA margin held steady at 15.3%, but the operating margin fell 230 bps to 10.9%. Advertising & Media grew 8.2% organically, while the Public Relations and Healthcare segments declined.Omnicom Group Inc. (OMC) reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate but failed to impress the market.The stock has b ...

NEW YORK, July 17, 2025 /PRNewswire/ -- Omnicom (NYSE: OMC) and Interpublic (NYSE: IPG) today announced the Australia Competition and Consumer Commission (ACCC) has granted clearance for Omnicom's pending acquisition of Interpublic.The ACCC approval brings the total number of antitrust approvals to 14 out of the 18 required for closing. The companies remain firmly on track to complete the transaction in the second half of 2025.The proposed merger of Omnicom and Interpublic will reimagine the marketing indus ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 New York 13-1514814 Registrant's telephone number, including area code: (212) 415-3600 Not Applicable (Former name, former address and former fiscal year, if changed since last report) | | Securities Regi ...

Omnicom (OMC) reported $4.02 billion in revenue for the quarter ended June 2025, representing a year-over- year increase of 4.2%. EPS of $2.05 for the same period compares to $1.95 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.95 billion, representing a surprise of +1.57%. The company delivered an EPS surprise of +1.49%, with the consensus EPS estimate being $2.02. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

Financial Data and Key Metrics Changes - Organic growth for Q2 2025 was 3%, aligning with expectations, while non-GAAP adjusted EBITDA margin remained flat at 15.3% compared to the previous year [5][20]. - Non-GAAP adjusted net income per share increased by 5.1% to $2.50, compared to the same period in 2024 [6][32]. - Cash flow supported dividends, acquisitions, and share repurchases, with $223 million used for share repurchases in the first half of 2025, on track for a total of $600 million for the year [6][35]. Business Line Data and Key Metrics Changes - Media and advertising grew by 8%, driven by strong media performance, while precision marketing increased by 5% [24]. - Public relations saw a decline of 9%, primarily in the U.S., due to weaker performance in global networks [25]. - Healthcare revenues decreased by 5%, and branding and retail commerce fell by 17% due to market uncertainties [26][27]. Market Data and Key Metrics Changes - The U.S. market experienced organic growth of 3%, while Asia Pacific and Continental Europe also posted solid growth, with the UK being the only region without growth [28]. - The auto category saw year-over-year increases, reflecting new business wins, although some client spend reductions were noted [28]. Company Strategy and Development Direction - The company is focused on completing the acquisition of Interpublic, with 13 out of 18 required jurisdictions approved, aiming for a seamless integration [7][10]. - A reorganization of advanced data and technology assets into a platform organization was implemented to enhance client service and accelerate growth [10][11]. - The strategy emphasizes the integration of generative AI to enhance creativity and operational efficiency, positioning the company for long-term competitive advantage [14][18]. Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic uncertainties persist, they remain confident in achieving full-year organic growth and margin targets [13][20]. - The company is prepared to adapt to changing market conditions and is optimistic about future growth opportunities, particularly post-acquisition [70][71]. Other Important Information - The company has appointed a new Chief People Officer to enhance HR capabilities and attract top talent [12]. - The integration planning for Interpublic is ongoing, with a focus on achieving identified synergies [13][76]. Q&A Session Summary Question: Can you speak to the progression of things since your last update in April? - Management indicated that the environment has not changed significantly, with ongoing macro concerns being manageable [40][41]. Question: How do you view the sustainability and growth of principal trading? - Management expressed confidence in the continued growth of media, highlighting their unique product offerings [46][47]. Question: What is the expected impact of AI agents on financials? - The deployment of AI agents is expected to enhance operational efficiency and drive top-line growth, although the full financial impact is yet to be determined [60][62]. Question: How do you view the current pipeline of opportunities? - Management noted that while some decision processes have slowed, they continue to be invited to significant pitches, indicating ongoing interest from clients [88][89]. Question: How should repositioning and acquisition-related costs be modeled for the year? - Management clarified that repositioning costs are separate from the synergy target and do not expect further charges in the near term [82][83]. Question: How does the company view the impact of new AI tools on the creative business model? - Management believes that advancements in AI will enhance creativity and efficiency, allowing for new compensation models based on outcomes rather than time spent [106][111].

Financial Performance - Q2 2025 organic revenue grew by 30%[9] - Q2 Non-GAAP Adj EBITA increased by 41% to $6138 million with a 153% margin[10] - Q2 Non-GAAP adjusted diluted EPS increased by 51% to $205[10] - The company repurchased $142 million in shares in Q2 and $223 million year-to-date[10] Revenue Breakdown - Media & Advertising and Precision Marketing accounted for 68% of total revenue with combined organic growth exceeding 7%[9] - Total revenue for the second quarter was $40156 million a 42% increase[11] - Year-to-date revenue reached $77060 million a 30% increase[11] Strategic Initiatives - The Interpublic (IPG) Transaction cleared antitrust review by the US Federal Trade Commission in late June 2025 with closing expected in the second half of 2025[9] - The company achieved a $250 million year-to-date improvement in the use of operating capital[10]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=OMNICOM%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Overview of Q2 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Results) Omnicom reported Q2 2025 revenue of **$4.02 billion**, a **4.2%** increase year-over-year, driven by **3.0%** organic growth, while GAAP net income and EPS declined due to acquisition and repositioning costs, with non-GAAP adjusted EPS rising **5.1%** Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $4,015.6 M | $3,853.8 M | +4.2% | | Organic Growth | 3.0% | N/A | N/A | | Operating Income | $439.2 M | $510.3 M | -13.9% | | Operating Income Margin | 10.9% | 13.2% | -2.3 p.p. | | Net Income | $257.6 M | $328.1 M | -21.5% | | Diluted EPS | $1.31 | $1.65 | -20.6% | | Adjusted EBITA | $613.8 M | $589.6 M | +4.1% | | Adjusted EBITA Margin | 15.3% | 15.3% | 0.0 p.p. | | Non-GAAP Adjusted Diluted EPS | $2.05 | $1.95 | +5.1% | [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO John Wren highlighted the company's resilience and **3.0%** organic growth, attributing it to the Omni platform, and noted the U.S. antitrust clearance for the Interpublic (IPG) acquisition as a key strategic milestone - Achieved solid **3.0%** organic revenue growth despite ongoing macroeconomic and geopolitical uncertainty[4](index=4&type=chunk) - Continued investment in the Omni operating platform is driving client outcomes and enhancing operational efficiency[4](index=4&type=chunk) - The transformational acquisition of Interpublic (IPG) successfully cleared U.S. antitrust review, with an expected close later in the year[4](index=4&type=chunk) [Detailed Financial Analysis](index=1&type=section&id=Detailed%20Financial%20Analysis) [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Total revenue for Q2 2025 increased **4.2%** to **$4,015.6 million**, driven by **3.0%** organic growth, with Media & Advertising and Latin America showing strong performance, while Public Relations and Healthcare declined Q2 2025 Revenue Growth Components (vs. Q2 2024) | Component | Impact on Revenue | Percentage Change | | :--- | :--- | :--- | | Organic Growth | +$116.8 M | +3.0% | | Foreign Currency Translation | +$42.4 M | +1.1% | | Acquisitions, net of dispositions | +$2.6 M | +0.1% | | **Total Revenue Increase** | **+$161.8 M** | **+4.2%** | Q2 2025 Organic Growth by Discipline (vs. Q2 2024) | Discipline | Organic Growth | | :--- | :--- | | Media & Advertising | +8.2% | | Precision Marketing | +5.0% | | Experiential | +2.9% | | Execution & Support | +1.5% | | Healthcare | -4.9% | | Public Relations | -9.3% | | Branding & Retail Commerce | -16.9% | Q2 2025 Organic Growth by Region (vs. Q2 2024) | Region | Organic Growth | | :--- | :--- | | Latin America | +18.0% | | Asia Pacific | +6.5% | | United States | +3.0% | | Euro Markets & Other Europe | +2.5% | | Other North America | +2.4% | | Middle East & Africa | +0.9% | | United Kingdom | -2.5% | [Expense Analysis](index=2&type=section&id=Expense%20Analysis) Operating expenses increased **7.0%** to **$3,576.4 million** due to **$66.0 million** in IPG acquisition costs and **$88.8 million** in repositioning costs, while salary and service costs rose **4.7%** - Operating expenses increased **7.0%** YoY to **$3,576.4 million**[10](index=10&type=chunk) - Q2 2025 expenses included **$66.0 million** in costs related to the pending IPG acquisition and **$88.8 million** in repositioning costs, primarily for severance[10](index=10&type=chunk) Change in Salary and Service Costs (Q2 2025 vs Q2 2024) | Cost Component | Q2 2025 | Change (YoY) | | :--- | :--- | :--- | | Salary and related costs | $1,827.8 M | -0.5% | | Third-party service costs | $918.4 M | +13.2% | | Third-party incidental costs | $186.4 M | +22.6% | | **Total Salary and service costs** | **$2,932.6 M** | **+4.7%** | - SG&A expenses increased **53.5%** to **$170.4 million**, primarily due to the **$66.0 million** in acquisition-related costs[13](index=13&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) GAAP operating income fell **13.9%** to **$439.2 million** and net income decreased **21.5%** to **$257.6 million**, primarily due to acquisition and repositioning costs, which also increased the effective tax rate to **30.2%** Operating Income and Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Income | $439.2 M | $510.3 M | | Operating Margin | 10.9% | 13.2% | - Acquisition-related costs and repositioning costs decreased the operating margin by **3.9 percentage points** in Q2 2025[14](index=14&type=chunk) Net Income and Diluted EPS (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $257.6 M | $328.1 M | | Diluted EPS | $1.31 | $1.65 | - The effective tax rate increased to **30.2%** in Q2 2025 from **26.4%** in Q2 2024, primarily due to the non-deductibility of certain acquisition-related costs[16](index=16&type=chunk) [Non-GAAP Performance Measures](index=3&type=section&id=Non-GAAP%20Performance%20Measures) Non-GAAP Adjusted EBITA increased **4.1%** to **$613.8 million** with a stable **15.3%** margin, and Non-GAAP Adjusted Diluted EPS grew **5.1%** to **$2.05**, reflecting underlying business performance excluding specific one-time costs EBITA and Adjusted EBITA (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | EBITA | $459.0 M | $531.8 M | -13.7% | | EBITA Margin | 11.4% | 13.8% | -2.4 p.p. | | Adjusted EBITA | $613.8 M | $589.6 M | +4.1% | | Adjusted EBITA Margin | 15.3% | 15.3% | 0.0 p.p. | GAAP vs Non-GAAP Adjusted Diluted EPS (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Diluted EPS | $1.31 | $1.65 | -20.6% | | Non-GAAP Adjusted Diluted EPS | $2.05 | $1.95 | +5.1% | [Key Disclosures and Company Information](index=3&type=section&id=Key%20Disclosures%20and%20Company%20Information) [Risks and Forward-Looking Statements](index=3&type=section&id=Risks%20and%20Forward-Looking%20Statements) The company faces significant risks from the pending IPG merger, including completion and integration challenges, alongside broader risks from global economic conditions, client spending reductions, cybersecurity threats, and AI technology management - Significant risks are related to the pending IPG merger, including potential for the merger not to be completed, regulatory delays or restrictions, loss of key employees, and failure to realize anticipated benefits[30](index=30&type=chunk) - The company faces risks from global economic conditions, geopolitical events, inflation, and changes in central bank interest rate policies[19](index=19&type=chunk)[30](index=30&type=chunk) - Other noted risks include reductions in client spending, cybersecurity incidents, and the effective management of risks and efficiencies related to Artificial Intelligence (AI) technologies[30](index=30&type=chunk) [Definitions and Non-GAAP Measures](index=3&type=section&id=Definitions%20and%20Non-GAAP%20Measures) The report defines key revenue components and explains the use of Non-GAAP measures like EBITA and adjusted metrics to enhance performance comparability by excluding specific non-recurring or non-cash items - Organic growth is calculated by subtracting the foreign exchange rate impact and the net acquisition/disposition revenue component from total revenue growth[23](index=23&type=chunk) - EBITA is defined as earnings before interest, taxes, and amortization of acquired intangible assets and internally developed strategic platform assets[28](index=28&type=chunk)[45](index=45&type=chunk) - Non-GAAP measures are presented because management believes they are useful for evaluating the impact of certain items on operating performance and allow for better comparability between reporting periods[28](index=28&type=chunk) [Company and Investor Information](index=4&type=section&id=Company%20and%20Investor%20Information) Omnicom, a leading global marketing and communications company serving over **5,000** clients in more than **70** countries, will host a conference call on July 15, 2025, to discuss its financial results - Omnicom is a leading provider of data-inspired, creative marketing and sales solutions, serving over **5,000** clients in more than **70** countries[26](index=26&type=chunk) - A conference call to review the financial results is scheduled for Tuesday, July 15, 2025, at 4:30 p.m. Eastern Time[24](index=24&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Consolidated Statements of Income](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The unaudited Consolidated Statements of Income detail financial performance for Q2 2025, showing revenue of **$4,015.6 million** and net income of **$257.6 million**, and for the six-month period, revenue of **$7,706.0 million** and net income of **$545.3 million** Consolidated Statements of Income (Three Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $4,015.6 | $3,853.8 | | Total Operating Expenses | $3,576.4 | $3,343.5 | | Operating Income | $439.2 | $510.3 | | Net Income - Omnicom Group Inc. | $257.6 | $328.1 | Consolidated Statements of Income (Six Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $7,706.0 | $7,484.3 | | Total Operating Expenses | $6,814.2 | $6,495.1 | | Operating Income | $891.8 | $989.2 | | Net Income - Omnicom Group Inc. | $545.3 | $646.7 | [Detail of Operating Expenses](index=9&type=section&id=DETAIL%20OF%20OPERATING%20EXPENSES) This statement details operating expense components for Q2 2025, showing total operating expenses of **$3,576.4 million**, with **$2,932.6 million** in salary and service costs and **$170.4 million** in SG&A, including acquisition-related costs Detail of Operating Expenses (Three Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total salary and service costs | $2,932.6 | $2,800.1 | | Occupancy and other costs | $325.9 | $314.2 | | Repositioning costs | $88.8 | $57.8 | | Selling, general and administrative expenses | $170.4 | $111.0 | | Depreciation and amortization | $58.7 | $60.4 | | **Total operating expenses** | **$3,576.4** | **$3,343.5** | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) This section provides detailed reconciliations of GAAP to Non-GAAP measures, including Net Income to EBITA and Adjusted EBITA, and adjustments to Operating Income, Net Income, and EPS, detailing the impact of repositioning, acquisition costs, and amortization Reconciliation of Operating Income to Adjusted EBITA (Q2 2025) | ($ in millions) | Amount | | :--- | :--- | | Operating Income (GAAP) | $439.2 | | Add back: amortization | $19.8 | | **EBITA** | **$459.0** | | Add back: Repositioning costs | $88.8 | | Add back: Acquisition related costs | $66.0 | | **EBITA - Adjusted (Non-GAAP)** | **$613.8** | Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Q2 2025) | ($ in millions) | Amount | | :--- | :--- | | Net Income - Reported (GAAP) | $257.6 | | Add: Repositioning costs (after-tax) | $67.2 | | Add: Acquisition related costs (after-tax) | $61.6 | | Add: Amortization (after-tax) | $14.7 | | **Non-GAAP Net Income - Adjusted** | **$401.1** |

Core Insights - Omnicom reported a solid organic revenue growth of 3.0% in Q2 2025, despite macroeconomic and geopolitical uncertainties, highlighting the resilience of its business model [2][4] - The company is optimistic about growth opportunities stemming from its transformational acquisition of Interpublic, which has successfully cleared U.S. antitrust review [2][3] Financial Performance - Revenue for Q2 2025 increased by $161.8 million, or 4.2%, reaching $4,015.6 million compared to $3,853.8 million in Q2 2024 [3][4] - Operating income decreased by $71.1 million, or 13.9%, to $439.2 million, with an operating income margin of 10.9%, down from 13.2% in the previous year [11][30] - Net income for Q2 2025 was $257.6 million, a decrease of $70.5 million, or 21.5%, from $328.1 million in Q2 2024, resulting in diluted earnings per share of $1.31 [15][28] Revenue Breakdown - Organic revenue growth by discipline included 8.2% for Media & Advertising, 5.0% for Precision Marketing, while declines were noted in Public Relations (9.3%) and Healthcare (4.9%) [5] - Regional organic growth rates were 3.0% in the U.S., 18.0% in Latin America, and a decline of 2.5% in the U.K. [6] Expense Analysis - Operating expenses rose by $232.9 million, or 7.0%, to $3,576.4 million, influenced by acquisition-related costs and repositioning costs [7][8] - Salary and service costs increased by $132.5 million, or 4.7%, primarily due to organic growth in Media & Advertising and Precision Marketing [8][9] Non-GAAP Measures - Adjusted EBITA for Q2 2025 was $613.8 million, an increase of $24.2 million, or 4.1%, with a margin of 15.3% [16][30] - Non-GAAP adjusted net income per share increased by $0.10, or 5.1%, to $2.05 compared to $1.95 in Q2 2024 [15][39] Tax and Interest - The effective tax rate increased to 30.2% in Q2 2025 from 26.4% in Q2 2024, primarily due to non-deductible acquisition-related costs [14] - Net interest expense decreased slightly to $40.7 million, with interest income rising to $21.9 million due to higher average cash balances [12]

Core Insights - Colin Selikow, Chief Creative Officer of DDB Chicago, has been named to Campaign US's 2025 40 Over 40 list, recognizing executives in advertising, marketing, media, technology, and communications [1] - Under Selikow's leadership, DDB Chicago has achieved significant accolades, including being named Campaign US' 2024 Creative Breakthrough Agency and winning over 300 international awards [4] Company Achievements - DDB Chicago has earned the title of Campaign US' 2024 Creative Breakthrough Agency, reflecting its innovative approach and successful campaigns [4] - The agency has received over 300 international awards, including 49 Cannes Lions, 31 D&AD Pencils, and 46 One Show Pencils, showcasing its creative excellence [4] Leadership and Impact - Colin Selikow is recognized as the 1 Most Awarded Executive Creative Director in the World by The Drum in 2024 and The One Club in 2023, highlighting his influence in the industry [2] - Selikow's leadership has fostered a culture of creativity and mentorship at DDB Chicago, contributing to the agency's growth and success [3] Notable Campaigns - Selikow led the creation of the "Apologize the Rainbow" campaign for Skittles, which won a 2025 Global Grand Effie, marking it as one of the most awarded campaigns of 2023 [4] - DDB Chicago recently secured the global creative and strategy assignment for Bimbo Global, demonstrating its competitive edge in the market [3] Industry Recognition - The judges for the Campaign US 40 Over 40 Awards are established professionals, ensuring that the winners represent the pinnacle of creativity and leadership in the industry [5] - DDB Worldwide has been recognized as the 1 Most Awarded Agency Network in the 2024 Effie Global Best of the Best and has received multiple accolades from Cannes Lions and D&AD [8]