FOR IMMEDIATE RELEASE
| Contact: | Randall Weisenburger
212-415-3393 |
Exhibit 99.1
Omnicom Reports Second Quarter 2006 Results
NEW YORK, JULY 25, 2006 —Omnicom Group Inc. (NYSE-OMC) today announced that net income for the second quarter of 2006 increased 8% to $244.1 million from $225.8 million in the second quarter of 2005. Diluted earnings per share in the second quarter of 2006 increased 15% to $1.42 per share from $1.24 per share in the second quarter of 2005.
Worldwide revenue increased 8% to $2,823.4 million from $2,615.8 million in the second quarter of 2005. Domestic revenue for the second quarter of 2006 increased 8% to $1,535.4 million compared to $1,427.7 million in the second quarter of 2005. International revenue increased 8% to $1,288.0 million compared to $1,188.1 million in the second quarter of 2005.
Net income for the six months ended June 30, 2006 increased 9% to $409.7 million from $376.3 million in the same period in 2005. Diluted earnings per share for the six months ended June 30, 2006 increased 14% to $2.34 per share in 2006 from $2.05 per share in the same period in 2005.
Worldwide revenue for the six months ended June 30, 2006 increased 7% to $5,386.3 million from $5,018.8 million in the same period in 2005. Domestic revenue for the six months ended June 30, 2006 increased 8% to $2,968.4 million from $2,739.8 million in the same period in 2005. International revenue for the six months ended June 30, 2006 increased 6% to $2,417.9 million from $2,279.0 million in the same period in 2005.
437 Madison Avenue, New York, N.Y. 10022. (212) 415-3600 Telex 428245 Fax (212) 415-3530
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, 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 second quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.
Omnicom Group Inc.
(Unaudited)
(In Millions of Dollars, Except Per Share Data)
| Three Months Ended June 30, | 2006 | | 2005 | |
|
| |
| |
| Revenue | $ 2,823.4 | | $2,615.8 | |
| Operating expenses | 2,406.0 | | 2,233.8 | |
| |
| |
| |
| Operating profit | 417.4 | | 382.0 | |
| Net interest expense | 25.5 | | 14.3 | |
| |
| |
| |
| Income before income taxes | 391.9 | | 367.7 | |
| Income taxes | 131.7 | | 124.3 | |
| |
| |
| |
| Income after income taxes | 260.2 | | 243.4 | |
| | | | | |
| Equity in earnings of affiliates | 6.3 | | 5.0 | |
| Minority interests | (22.4 | ) | (22.6 | ) |
| |
| |
| |
| Net income | $ 244.1 | | $ 225.8 | |
| |
| |
| |
| Net income per common share |
| Basic | $ 1.43 | | $ 1.24 | |
| Diluted | $ 1.42 | | $ 1.24 | |
| |
| Weighted average shares (in millions) |
| Basic | 170.2 | | 181.4 | |
| Diluted | 172.0 | | 182.8 | |
| | | | | |
| Dividend declared per share | $ 0.250 | | $ 0.225 | |
Omnicom Group Inc.
(Unaudited)
(In Millions of Dollars, Except Per Share Data)
| Six Months Ended June 30, | 2006 (1) | | 2005 | |
|
| |
| |
| Revenue | $ 5,386.3 | | $ 5,018.8 | |
| Operating expenses | 4,684.4 | | 4,379.5 | |
| |
| |
| |
| Operating profit | 701.9 | | 639.3 | |
| Net interest expense | 40.7 | | 26.4 | |
| |
| |
| |
| Income before income taxes | 661.2 | | 612.9 | |
| Income taxes | 222.6 | | 210.5 | |
| |
| |
| |
| Income after income taxes | 438.6 | | 402.4 | |
| | | | | |
| Equity in earnings of affiliates | 11.2 | | 10.2 | |
| Minority interests | (40.1 | ) | (36.3 | ) |
| |
| |
| |
| Net income | $ 409.7 | | $ 376.3 | |
| |
| |
| |
| Net income per common share |
| Basic | $ 2.36 | | $ 2.07 | |
| Diluted | $ 2.34 | | $ 2.05 | |
| |
| Weighted average shares (in millions) |
| Basic | 173.6 | | 182.0 | |
| Diluted | 175.2 | | 183.5 | |
| | | | | |
| Dividend declared per share | $ 0.500 | | $ 0.450 | |
| (1) | | Included in operating profit and net income for the six months ended June 30, 2006 is a benefit of $3.6 million and $2.0 million, respectively, resulting from the cumulative effect of the adoption of SFAS 123(R) and the requirement to provide an estimate for forfeitures on all unvested stock-based compensation awards, as of January 1, 2006. |
