Omnicom (NYSE: OMC) reported a 0.7% decline in Q1 2010 profit to $163.4 million, from $164.5 million in the first quarter of 2009. Worldwide revenue for Q1 2010 increased 6.3% to $2,92 billion, from $2,74 billion in Q1 2009.
PR revenue increased 5.9% year over year to $275.5 million. Organic PR revenue growth, which excludes revenues gained by acquisition, increased 2.4%.
“The general business environment continues to stabilize and improve,” said Omnicom chief executive John Wren on a conference call this morning. “Areas such as CRM and PR showed fairly strong organic growth,” he said.
While Wren said the company is expressing “cautious optimism,” he reminded that they’re not out of the woods yet. “You will have to become more productive in beginning of recovery, until the client is comfortable that the recovery is fully in place, when they increase their fee again, and we’re in that period right now,” he said.
The report slightly beat analyst expectations. Full release after the jump.
Omnicom Reports First Quarter 2010 Results
NEW YORK, APRIL 20, 2010 – Omnicom Group Inc. (NYSE-OMC) today
announced that its net income for the first quarter of 2010 decreased 0.7% to $163.4 million from $164.5 million in the first quarter of 2009. Omnicom’s diluted net income per common share in the first quarter of 2010 decreased 1.9% to $0.52 per share from $0.53 per share in the first quarter of 2009.
Worldwide revenue for the first quarter of 2010 increased 6.3% to $2,920.0 million from $2,746.6 million in the first quarter of 2009. Domestic revenue for the first quarter of 2010 increased 3.9% to $1,592.8 million compared to $1,532.3 million in the first quarter of 2009. International revenue for the first quarter of 2010
increased 9.3% to $1,327.2 million compared to $1,214.3 million in the first quarter of 2009.
Omnicom Group Inc. (NYSE-OMC) (www.omnicomgroup.com) is a leading
global marketing and corporate communications company. Omnicomâ€™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 first quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.
Omnicom Group Inc.
(In Millions of Dollars, Except Per Share Data)
Three Months Ended March 31, 2010 2009
Revenue $ 2,920.0 $ 2,746.6
Operating expenses 2,629.0 2,464.2
Operating income 291.0 282.4
Net interest expense 24.1 21.4
Income before income taxes 266.9 261.0
Income tax expense 90.7 88.7
Income from equity method investments 4.7 5.9
Net Income 180.9 178.2
Less: Net income attributed to noncontrolling interests 17.5 13.7
Net income – Omnicom Group Inc. $ 163.4 $ 164.5
Net income per common share – Omnicom Group Inc.
Basic $ 0.53 $ 0.53
Diluted $ 0.52 $ 0.53
Weighted average shares (in millions)
Basic 306.4 307.5
Diluted 311.0 307.6
Dividend declared per common share $ 0.20 $ 0.15