2025 First Quarter April 15, 2025 Highlights Revenue Business update Income Capital allocation (i) See Non-GAAP reconciliations on pages 17 - 20. 2 • Q1 2025 organic revenue growth of +3.4% • Led by strong growth in Media & Advertising and Precision Marketing (together 68% of revenue growing +7.0% organic) • Omnicom is the only company to be named Leader in The Forrester Wave for all 3 marketing services reports: – Marketing Creative and Content Services (Mar 2025) – Media Management Services (Nov 2024) – C ...

Core Insights - Omnicom reported revenue of $3.69 billion for Q1 2025, reflecting a 1.7% increase year-over-year and a slight positive surprise of 0.15% over the Zacks Consensus Estimate of $3.68 billion [1] - Earnings per share (EPS) for the quarter was $1.70, surpassing the previous year's $1.67 and exceeding the consensus estimate of $1.63 by 4.29% [1] Revenue Performance - Total Organic Revenue Growth was 3.4%, slightly below the average estimate of 3.9% [4] - Organic Revenue Growth in Healthcare was -3.2%, significantly underperforming the estimated 1.3% [4] - Organic Revenue Growth in Commerce & Branding was -10%, compared to the estimated -2.6% [4] - Organic Revenue Growth in Experiential was -1.5%, falling short of the estimated 5.9% [4] Geographic Revenue Breakdown - Revenue from Asia Pacific was $416.70 million, slightly below the estimated $419.09 million, but showing a year-over-year increase of 2.2% [4] - Revenue from the Middle East and Africa was $70.80 million, underperforming the estimated $78.88 million, representing an 11.1% decline year-over-year [4] - Revenue from Latin America was $96.40 million, slightly below the estimated $98.69 million, with a minimal year-over-year change of -0.1% [4] Segment Revenue Analysis - Revenue from Commerce & Branding was $159.50 million, significantly lower than the estimated $190.69 million, indicating a year-over-year decline of 20.3% [4] - Revenue from Execution & Support was $209.80 million, slightly above the estimated $205.63 million, with a year-over-year change of -0.8% [4] - Revenue from Healthcare was $305.70 million, exceeding the estimated $283.83 million, but reflecting a year-over-year decline of 5.5% [4] - Revenue from Public Relations was $362.70 million, below the estimated $396.87 million, showing a year-over-year decline of 7.1% [4] - Revenue from Experiential was $154.20 million, under the estimated $165.96 million, with a year-over-year change of -3.6% [4] Stock Performance - Omnicom's shares have returned -4.7% over the past month, compared to a -3.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Omnicom reported quarterly earnings of $1.70 per share, exceeding the Zacks Consensus Estimate of $1.63 per share, and showing a slight increase from $1.67 per share a year ago, indicating a positive earnings surprise of 4.29% [1][2] Financial Performance - The company achieved revenues of $3.69 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.15% and reflecting a year-over-year increase from $3.63 billion [2] - Over the last four quarters, Omnicom has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Omnicom shares have declined approximately 11% since the beginning of the year, compared to an 8.1% decline in the S&P 500 [3] - The company's current Zacks Rank is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Earnings Expectations - The consensus EPS estimate for the upcoming quarter is $2.07 on revenues of $3.95 billion, while the estimate for the current fiscal year is $8.31 on revenues of $16.01 billion [7] - The trend of estimate revisions for Omnicom has been unfavorable leading up to the earnings release [6] Industry Context - The Advertising and Marketing industry, to which Omnicom belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Revenue Performance - Worldwide revenue for Q1 2025 increased by $59.9 million, or 1.6%, to $3,690.4 million compared to $3,630.5 million in Q1 2024[67] - Organic revenue growth contributed $121.9 million, or 3.4%, primarily driven by Media & Advertising and Precision Marketing disciplines[67] - Revenue from Media & Advertising increased by $94.0 million, while Branding & Retail Commerce decreased by $26.0 million in Q1 2025 compared to Q1 2024[68] - North America revenue increased by $70.6 million, or 3.5%, while Middle East and Africa revenue decreased by $8.8 million, or 11.1%[69] - Revenue for the three months ended March 31, 2025, was $3,690.4 million, an increase of $59.9 million or 1.6% compared to $3,630.5 million in the same period of 2024[73] - Organic growth contributed $121.9 million or 3.4% to revenue, primarily driven by increased client spending in Media & Advertising and Precision Marketing[82] - Revenue from Media & Advertising increased by $94.0 million, representing a 7.2% growth, while Public Relations and Healthcare disciplines saw declines of $20.8 million and $11.3 million, respectively[82] - In Asia-Pacific, organic revenue increased by 6.0%, driven by Media & Advertising, with positive growth in India and Australia[91] - In the U.K., organic revenue decreased by 0.7% for the three months ended March 31, 2025[89] Income and Expenses - Operating income decreased by $26.3 million, or 5.5%, to $452.6 million, with an operating margin of 12.3% compared to 13.2% in the prior year[70] - Net income for Omnicom Group Inc. was $287.7 million, down $30.9 million, or 9.7%, from $318.6 million in Q1 2024[70] - Operating income decreased to $452.6 million, down $26.3 million from $478.9 million in the prior year, resulting in an operating margin of 12.3% compared to 13.2%[73] - Net income for Omnicom Group Inc. was $287.7 million, a decrease of $30.9 million from $318.6 million in the same period last year, with diluted net income per share dropping to $1.45 from $1.59[73] - Operating expenses increased by $86.2 million, or 2.7%, to $3,237.8 million, with salary and service costs rising by $53.7 million[94] - Acquisition-related costs of $33.8 million were recorded in Q1 2025 as part of the merger expenses[57] - Acquisition-related costs of $33.8 million impacted both operating income and EBITA[98] - The effective tax rate increased to 28.5% from 25.7%, primarily due to non-deductible acquisition costs[101] Client Concentration - The largest client accounted for 2.7% of total revenue, while the top 100 clients represented approximately 53.6% of revenue for the twelve months ended March 31, 2025[65] - The ten largest clients represented 19.1% of revenue for the twelve months ended March 31, 2025, down from 20.0% in the prior year[83] - The largest client represented only 2.7% of revenue for the twelve months ended March 31, 2025, indicating a diversified client base[123] Cash Flow and Debt - Cash and cash equivalents decreased by $961.1 million from December 31, 2024, with $786.8 million used in operating activities[108] - The company's net debt increased by $1.0 billion to $2.8 billion from December 31, 2024, primarily due to cash usage of $786.8 million for operating activities[112] - The components of net debt as of March 31, 2025, included total debt of $6.1356 billion and cash and cash equivalents of $3.3783 billion[113] - The company maintained a Leverage Ratio of 2.4 times as of March 31, 2025, complying with the financial covenant requiring a maximum of 3.5 times[118] - The company's long-term and short-term debt ratings were BBB+ and A2 by S&P, and Baa1 and P2 by Moody's as of March 31, 2025[119] - The company has a $2.5 billion unsecured multi-currency revolving credit facility, expiring on June 2, 2028[106] - The company has the ability to issue up to $2 billion of U.S. Dollar-denominated commercial paper and $500 million in British Pounds or Euro under a Euro commercial paper program[110] Foreign Exchange Impact - Foreign exchange rate impacts reduced revenue by $59.2 million or 1.6%, mainly due to the weakening of currencies like the Euro and Brazilian Real against the U.S. Dollar[82] - The company expects a negative impact of 0.5% from foreign exchange rates in Q2 and a negative 1.0% for the full year, assuming current rates remain unchanged[77] - The company uses forward foreign exchange contracts to manage cash flow volatility arising from foreign exchange rate fluctuations[129] Strategic Focus - The company is focusing on leveraging generative AI to enhance service delivery and productivity while addressing associated risks and ethical considerations[63] - Discretionary spending for the first three months of 2025 was $253.7 million, significantly lower than $1.2 billion in the same period of 2024[108] - During the three months ended March 31, 2025, there were no drawings under the Credit Facility, and no commercial paper issuances were made[121] - The company has a policy governing counterparty credit risk with financial institutions that hold its cash and cash equivalents, ensuring minimum credit standards are met[110]

Financial Data and Key Metrics Changes - Organic revenue growth for Q1 2025 was 3.4%, aligning with expectations, with adjusted EBITDA margin at 13.8% [7][24] - Non-GAAP adjusted earnings per share increased by 1.8% to $1.70 compared to Q1 2024 [7][41] - Reported revenue grew by 2%, while total operating expenses included $33.8 million in IPG acquisition-related costs [23][24] Business Line Data and Key Metrics Changes - Media and advertising grew by 7%, driven by strong performance across geographies, while precision marketing increased by 6% [28] - Public relations declined by 5% due to client delays, and healthcare revenues were down 3% as expected [29][31] - Branding and retail commerce saw a significant decline of 10% due to uncertain market conditions [32] Market Data and Key Metrics Changes - The U.S. market experienced organic growth of 5%, while Latin America grew by 15% [32] - Europe showed mixed growth, and Asia Pacific posted growth but faced declines in the U.K. and the Middle East [32] Company Strategy and Development Direction - The company is focused on closing the proposed acquisition of Interpublic, with progress on regulatory approvals and integration planning [17][19] - Emphasis on leveraging AI technology through the OmniAI platform to enhance operational efficiency and client service [12][13] - The company aims to achieve $750 million in run-rate cost synergies post-acquisition [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business strategy despite economic volatility, adjusting full-year 2025 organic growth guidance to 2.5% - 4.5% [11] - The company is actively managing costs in line with revenue trends and remains optimistic about new business opportunities [61][65] Other Important Information - The company maintains a strong cash flow and balance sheet, with plans for share repurchases and dividends [8][42] - The book value of outstanding debt was $6.1 billion, with no maturities in 2025 [46] Q&A Session Summary Question: Why was the bottom end of the 2025 guidance lowered to 2.5%? - Management indicated it was a conservative adjustment based on market uncertainty, not due to specific client actions [51][55] Question: Can you elaborate on delays in government spending for public relations? - Delays were noted in the U.S. related to FDA projects, with no significant trends expected moving forward [60][63] Question: What is the tone of business in the auto and consumer packaged goods sectors? - Management noted that while there is uncertainty, no disastrous reports have emerged, and long-term contracts provide stability [131][132]

Financial Data and Key Metrics Changes - Organic revenue growth for Q1 2025 was 3.4%, aligning with expectations, with adjusted EBITDA margin at 13.8% [7][24] - Non-GAAP adjusted earnings per share increased by 1.8% to $1.70 compared to Q1 2024 [7][41] - Reported revenue grew by 2%, while total operating expenses included $33.8 million of IPG acquisition-related costs [23][24] Business Line Data and Key Metrics Changes - Media and advertising grew by 7%, driven by strong performance across geographies, while precision marketing increased by 6% [28] - Public relations declined by 5% due to client delays, and branding and retail commerce fell by 10% due to uncertain market conditions [29][32] - Healthcare revenues decreased by 3%, with expectations for improved growth in the second half of the year [31] Market Data and Key Metrics Changes - The U.S. market experienced organic growth of 5%, while Latin America grew by 15% [32] - Europe showed mixed growth, and Asia Pacific posted growth offset by declines in the U.K. and the Middle East [32] Company Strategy and Development Direction - The company is focused on closing the proposed acquisition of Interpublic, with progress on regulatory approvals and integration planning [17][19] - Emphasis on leveraging AI technology through the OmniAI platform to enhance operational efficiency and client outcomes [12][20] - The company aims to achieve $750 million in run rate cost synergies post-acquisition [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business strategy despite economic volatility, adjusting full-year 2025 organic growth guidance to between 2.5% and 4.5% [11] - The company is actively managing costs in line with revenue trends and remains optimistic about new business opportunities [61][65] Other Important Information - The company maintains a strong cash flow and balance sheet, with plans for share repurchases and dividends [8][42] - The book value of outstanding debt was $6.1 billion, with no maturities in 2025 [46] Q&A Session Summary Question: Why was the bottom end of the 2025 guidance lowered to 2.5%? - Management indicated it was a conservative adjustment based on market uncertainty, not due to specific client actions [51][55] Question: Can you elaborate on delays in government spending affecting public relations? - Delays were noted in the U.S. related to FDA projects, with expectations for a difficult comparison in Q3 and Q4 due to prior election-related spending [60][63] Question: What is the outlook for the healthcare sector? - The decline in Q1 was attributed to the loss of specific accounts, but the healthcare segment is expected to remain strong moving forward [92] Question: How is the company managing third-party service costs? - The growth in third-party service costs is aligned with client demand and is expected to continue, reflecting industry trends [112] Question: What is the tone of business in the auto and consumer packaged goods sectors? - There is uncertainty regarding spending levels, but no significant negative reports have been received from clients in these sectors [131][135]

OMNICOM REPORTS FIRST QUARTER 2025 RESULTS 2025 First Quarter: NEW YORK, April 15, 2025 - Omnicom (NYSE: OMC) today announced results for the quarter ended March 31, 2025. "Organic revenue growth for the first quarter was 3.4%. We are assessing the implications of economic and market events to determine how they will affect our clients and business for the remainder of 2025. While uncertainty has increased, one thing hasn't changed and will always be true – Omnicom is a trusted partner for our clients, offe ...

2025 First Quarter: Revenue of $3.7 billion, with organic growth of 3.4% Net income of $287.7 million Diluted earnings per share of $1.45; $1.70 Non-GAAP adjusted Operating income of $452.6 million; Non-GAAP Adj. EBITA of $508.2 million with 13.8% marginNEW YORK, April 15, 2025 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced results for the quarter ended March 31, 2025."Organic revenue growth for the first quarter was 3.4%. We are assessing the implications of economic and market events to determine how ...

The upcoming report from Omnicom (OMC) is expected to reveal quarterly earnings of $1.60 per share, indicating a decline of 4.2% compared to the year-ago period. Analysts forecast revenues of $3.68 billion, representing an increase of 1.5% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings release, it is of utm ...

NEW YORK, April 9, 2025 /PRNewswire/ -- Omnicom (NYSE: OMC) will publish its first quarter 2025 results on Tuesday, April 15, 2025 after the New York Stock Exchange close of trading. The company will also host a conference call to review such financial results on Tuesday, April 15, 2025, starting at 4:30 p.m. Eastern Time.  A live webcast of the call will be available at Omnicom's investor relations website, investor.omnicomgroup.com, along with the related earnings press release and slide presentation. A w ...