Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: | Randall Weisenburger |
Omnicom Reports First Quarter 2009 Results
NEW YORK, April 27, 2009- Omnicom Group Inc. (NYSE-OMC) today announced that net income for the first quarter of 2009 decreased 21.2% to $164.5 million from $208.7 million in the first quarter of 2008. Diluted net income per common share in the first quarter of 2009 decreased 17.2% to $0.53 per share from $0.64 per share in the first quarter of 2008.
Worldwide revenue for the first quarter of 2009 decreased 14.0% to $2,746.6 million from $3,195.4 million in the first quarter of 2008. Domestic revenue for the first quarter of 2009 decreased 7.8% to $1,532.3 million compared to $1,661.2 million in the first quarter of 2008. International revenue for the first quarter of 2009 decreased 20.9% to $1,214.3 million compared to $1,534.2 million in the first quarter of 2008.
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.
For a live webcast and/or a replay of our first quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.
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Omnicom Group Inc.
(Unaudited)
(In Millions of Dollars, Except Per Share Data)
| Three Months Ended March 31, | 2009 | 2008 | |||||
| Revenue | $ | 2,746.6 | $ | 3,195.4 | |||
| Operating expenses | 2,464.2 | 2,844.6 | |||||
| Operating profit | 282.4 | 350.8 | |||||
| Net interest expense | 21.4 | 11.0 | |||||
| Income before income taxes | 261.0 | 339.8 | |||||
| Income tax expense | 88.7 | 115.2 | |||||
| Income from equity method investments | 5.9 | 8.1 | |||||
| Net income | 178.2 | 232.7 | |||||
| Less: Net income attributed to noncontrolling interests(a) | (13.7 | ) | (24.0 | ) | |||
| Net income - Omnicom Group Inc.(a) | $ | 164.5 | $ | 208.7 | |||
| Net income per common share – Omnicom Group Inc.(b) | |||||||
| Basic | $ | 0.53 | $ | 0.65 | |||
| Diluted | $ | 0.53 | $ | 0.64 | |||
| Weighted average shares (in millions)(b) | |||||||
| Basic | 307.5 | 318.3 | |||||
| Diluted | 307.6 | 320.1 | |||||
| Dividend declared per common share | $ | 0.15 | $ | 0.15 | |||
| (a) | On January 1, 2009, we adopted SFAS 160, Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51. In accordance with the presentation requirements of SFAS 160, we have reclassified the amounts reported as minority interest expense in 2008 as noncontrolling interests to be consistent with the 2009 presentation. | |
| (b) | On January 1, 2009, we adopted FSP EITF 03-6-1, Determining Whether Instruments Granted in Share- Based Payment Transactions Are Participating Securities. Our unvested restricted stock awards pay dividends and therefore qualify as participating securities. In accordance with EITF 03-6-1, Net income, for the purposes of the basic and diluted net income per common share in 2009 and 2008, is reduced by $2.2 million and $2.6 million, respectively for a presumed hypothetical distribution of earnings to the holders of the unvested restricted stock. Additionally, the unvested restricted shares are excluded from the calculation of diluted net income per common share because their inclusion would have been anti-dilutive. The above information reflects the effect of the adoption on Earnings per Share, as if we had adopted EITF 03-6-1 at the beginning of the period and the 2008 amounts have been adjusted as required by EITF 03-6-1. | |