Omnicomnews
Contact: Fred Meyer
212-415-3631
FOR IMMEDIATE RELEASE
NEW YORK, FEBRUARY 19, 1998 - Omnicom Group Inc. (OMC-NYSE) today announced that
net income for the year increased 26% to $222.4 million in 1997 from $176.3
million in 1996. Diluted earnings per share increased 22% to $1.37 per share in
1997 from $1.12 per share in 1996. It is the eleventh consecutive year since its
formation that Omnicom has reported record earnings.
Worldwide revenues from commission and fee income increased 18% to
$3,124.8 million in 1997 from $2,641.7 million in 1996. Domestic revenues
increased 17% to $1,616.8 million in 1997 from $1,384.4 million in 1996.
International revenues increased 20% to $1,508.0 million in 1997 from $1,257.3
million in 1996.
Net income in the fourth quarter of 1997 increased 24% to $74.5 million as
compared to $60.2 million in the fourth quarter in 1996. Diluted earnings per
share for the fourth quarter increased 22% to $0.45 per share in 1997 from $0.37
per share in 1996.
Worldwide revenues from commission and fee income increased 19% to $895.1
million in the fourth quarter of 1997 from $751.8 million in the same period in
1996. Domestic revenues increased 16% to $425.9 million in 1997 from $366.6
million in 1996. International revenues increased 22% to $469.2 million in 1997
from $385.2 million in 1996.
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Omnicom Group Inc.
(Unaudited)
(in Thousands of Dollars, Except Per Share Data)
Percent
-------------------------- Increase
Three Months Ended December 31 1997 1996 (Decrease)
- ------------------------------ ---------- ------------ ----------
Commission and fee income $ 895,056 $ 751,829 19%
Operating and interest expenses 774,425 651,874 19%
Income before income taxes 120,631 99,955 21%
Income taxes 50,294 40,706 24%
Income after income taxes 70,337 59,249 19%
Equity in affiliates 14,062 9,925 42%
Minority interests (9,942) (8,944) 11%
Net income $ 74,457 $ 60,230 24%
Earnings per share(*)
Basic $ 0.47 $ 0.38 24%
Diluted $ 0.45 $ 0.37 22%
Dividend declared per share (*) $ 0.125 $ 0.10 25%
- --------
(*) All per share amounts have been adjusted to reflect a two-for-one stock
split in the form of a 100% stock dividend effective December 16, 1997.
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Omnicom Group Inc.
(Unaudited)
(in Thousands of Dollars, Except Per Share Data)
Percent
-------------------------- Increase
Year Ended December 31 1997 1996 (Decrease)
- ------------------------------ ----------- ------------ ----------
Commission and fee income $ 3,124,813 $ 2,641,667 18%
Operating and interest expenses 2,743,568 2,336,436 17%
Income before income taxes 381,245 305,231 25%
Income taxes 156,484 123,639 27%
Income after income taxes 224,761 181,592 24%
Equity in affiliates 30,089 20,510 47%
Minority interests (32,435) (25,773) 26%
Net income $ 222,415 $ 176,329 26%
Earnings per share(*)
Basic $ 1.40 $ 1.17 20%
Diluted $ 1.37 $ 1.12 22%
Dividend declared per share (*) $ 0.45 $ 0.375 20%
- ----------
(*) All per share amounts have been adjusted to reflect a two-for-one stock
split in the form of a 100% stock dividend effective December 16, 1997.
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