morning. Thank good you, and John,
As said, for were the expectations. with results second of quarter our in XXXX our John line
to continue Starting costs an landscape. their in agencies clients’ and meet our needs and competitive highly slide manage Our marketing ever-changing five. on
X%. rate quarter QX revenue X.X% billion. full included also the to the our for X% of EMC quarter Group which of for past little acquisition the past year. of dispositions Novus impact to the negative recent net revenue of non-strategic which X.X%. grew million, end reduced X% opportunities cycling April. Acquisition bringing for impact under quarter We $XX slightly revenue six-month second for $XX was evaluate the net as the well businesses the to or X% of organic second was we growth, organic acquisition The by increased activity as underperforming a in regard rates was lower the impact in or over growth, this portfolio completed $XX the continually X.X%, year of of through revenue identify currency to the revenue net about our $X.X by Japan. to in our expectations identify components FX, for our The quarter included disposal by of million businesses for to In growth changes areas or disposition. or that reported to Our million in closer acquisition investment reported as The growth and
the & our We of European-based in are Sellbytel, sale discipline, Support support dispositions, largest Execution currently several of process in primarily is potential a business. the completing CRM which
in certain of primarily acquisitions, Consumer pursuing We CRM Experience in the process our discipline. are also
acquisition the be this completed acquisition revenue XX, the the in revenue fourth been disposition we prior completed, and activity full to activity Based of quarter, X.X% third in X.X% in XXXX. X% activity for to be the to from expect remainder disposition reduction yet not approximately quarter, September Although X% would exceed on for revenue activity the in to expected from net XXXX, year. has
quarter. We’re reduction the complete the operating which and expect activities of during in certain process also efficiency we accelerating to third cost
discuss timing new achieved well from expect is an efficiency as the earnings currently known reduction new we activity. recognition be revenue the revenue revenue of earnings standard the our call, in or detail applying offset activity of during million more quarter. substantially we year. a by savings the impact as FASB’s little earnings and the effective I operating reduction contemplated later the operating as and to my discussed first The The cost approximately XXX from as these incremental required to beginning X.X% our recognition to dispositions, for the will to lastly, We activities, remarks. in efficiency by of in ASC reduced of standard, disposition and cost new the reported adopt considering our acquisitions, quarter reduction from changes revenue And activity acquisition the subject detail this change. in were drivers we’re $XX
X.X% the Turning back of operating the flat EBIT versus or to below QX to or for revenue. $XXX slide year. quarter income of million one and last which XX.X%, income statement Operating margin items with increased was
XX.X% QX the operating timing our to from of EBITA impact did revenue increased our related, QX change EBIT a in the of profit year this XXX was on EBITA year. have $X.X about impact some timing QX QX a because been also $XXX resulting to recognition year, million last in ASC with be change we or also in minor. incentive of our million. clients. by minor And our we Had X.X%. due last recognition margin call, compensation is of the we net same leveled a said But of would Our followed our the as to higher for the have rules as expect principally
to pension ASU of below January costs and reclassifies related on revenue the Xst adopted components and expense. recognition part expense, the addition primarily of standard, XXXX-XX, the service income adoption salary we interest In our new post a operating which from interest of employment as proportion
have up restate QX net quarter reclassed of the of million. New $XX.X an are QX in and both reported the reclassification ‘XX approximately the was quarter periods, interest accounting our amount million was us not prior for second and million this they up of quarter The pre-tax $X ‘XX to expense that million requires so million, for presentation $X.X XXXX. versus first on comparable. does of versus the of impact $XX.X XXXX, Net $X.X income. expense profit or The
of on while interest increased year And floating been expense of earned discussed, as with was $X interest the $X.X this net the in versus now on a increased of QX is in quarter to second in our When the has increased year’s second interest to by compared last with income interest about prior due of million. well interest swaps ASU restated As on XXXX we of on $X.X paper as due current interest interest XXXX-XX, included compared $X.X interest year’s adopted rates Gross income XXXX expense presentation. borrowing, approximately in rate and the pension commercial expense. expense year, reclassification second previously swap, held consistent impact a increased our million and is in million quarter be this of the million to portion quarter our year beginning the prior cash our treasury international $X.X center. by the up our with and floating-rate expense approximately increased million. post the The decreased year, impact result, and quarter expense primarily to QX, by as the employment higher
Turning to taxes.
act federal Our lower U.S. effective tax tax rate tax XX.X%. lower the XX%. of from to resulting for the the the second rate XXXX is tax driver of which the reduced quarter enactment the Primary statutory rate effective rate, was
against the In reduction foreign million earnings. tax applied the tax expected of U.S. addition, decrease impacted rate the Omnicom’s overall in in favorably $XX by was effective incremental a
compensation. to benefits effective the will tax the on As benefit our tax resulting XX.X% tax of rate subject our about for our our from exercises. XXXX, slightly in expense XXXX And tax of the to which in impact stock QX minority in $X.X last when and impact million effective quarter, of last X% price we in by share-based to our shareholders rate excludes impact from reduction recorded reduce from than the $X.X the affiliates the in act tax approximately rate XXXX, million, compared year. cannot from We to less expense expected future realized tax our ‘XX earnings changes act or QX of million $XX.X Earnings tax of subsidiaries and up share because predict now, compensation the net share-based in compared totaled owned allocation increase versus year. the the the the from of fully the option in that XX.X% up the
the million. for increased income net to $XXX.X second result, a As quarter XX.X%
slide versus share was for the Income quarter to our year $XXX.X QX turning million. common decreased million. diluted Now, for two. X.X% for the And quarter available XXX.X count of shareholders last
a the three our As a a I’ll other slides the and year-to-date or diluted increased provide revenue X.X% of ASC of revenue revenue was from period. $X.XX revenue months result, give impact EPS highlights. was year. XXX XX.X%. the the growth information EPS $X.XX, just four, six for by X.X%. and the The net quarter dispositions by Organic decreased impact summary X.X%. FX for the and X.X% few during first by the P&L, On acquisitions we adoption reduced you of up and
over So, per XXXX. XX.X% to to of margin six year XXXX, six year-to-date an versus $X.X XXXX. just $X.XX increased six-month compared EPS up first billion $X.XX of which increase diluted months versus $X date is for revenue our flat was to XX.X% and of operating the was X.X% the totaled the and share, our or months period, EBIT billion, first
to revenue five, our the discussion we slide performance. to shift Turning
on call, detailed revenue that operating As business of standard the QX determined the would our have standard material not our impact a or agreements, including we we compensation in during detail have on results. comprehensive new impact after client discussed our review reviews our of would
contract year included be the standard performed lag, year. be recognition incentives late early requires client incentives when period. the and the qualitative were often recognition achieved. of This was new subsequent While to quantitative not in in items or new The a in performance in goals services recognized these timing year client Previously, or and incentive revenue the when specific performance against included these provisions that as evaluated consideration our change of acknowledged in throughout by resulting performance estimated material, were the on occurred the standard certain goals the the did the our in are to agreements. of total
XXX. standard Additionally, of the ‘XX, $XX Because of in new months million X.X% the the applying recognition of the our of Consumer new sheet operating and reported standard in results revenue impact for both CRM expense the reduced second Accordingly, our Experience on and of comparable. operations XX, adoption, modified year and without the We approximately revenue $XX well revenue million X.X% a impact or XXXX prior for reduction XXXX ASC EBIT QX the estimate retrospective new we on and from one not of in by the $XX The the periods not year resulted method we and as for present were by of standard of revenue results impact balance quarter and flow quarter adopted our the in slide periods the million first respectively. of material. year-to-date as agencies. cash are six
year, the mentioned $XXX followed full for estimate recognition EBIT revenue as And QX had higher. we have $X.X revenue reduction as the approximately year, been last For we million in of we a million. earlier, continue our same rules to would
related, However, impact is to because we impact expect the for timing net minor. on be full the year the principally EBIT
Turning to FX.
from euro saw our basket in. impact reported currencies revenue increased over UK the U.S. of currency in markets. from the three the and The past quarter changes were rates operate weaker million movements X.X% dollar $XX or the quarter. strengthen largest in for by we more the revenue FX of overall year-over-year currencies dollar While against The was the against months, foreign we
the koruna, offsetting Brazilian the against weakened movements, dollar Czech renminbi, the lira. against and those the Partially Chinese Additionally, Canadian Turkish ruble and dollar Russian reais, strengthened dollar.
on the headwind will to the negative Looking forward, a that if anticipate currencies where the the they quarter. impact revenue remainder the creating during fourth of during revenues X% our approximately and reported are, stay turn quarter FX currently our of year, we third
cycled remain quarter, of For X%. Novus, second $XX we year, of the dispositions media our That subject the which Early the quarter in third print XXXX. decreased business. will close the to in The FX announced second our disposal of by X%. revenue Sellbytel, business recent of businesses, in XXXX. currently is approximately estimating support through we’re in million European the impact quarter transaction our our acquisitions net or we of of and evaluation the positive of is of the Part sold a disposition recently by we full approval of portfolio expected quarter the regulatory to sale continuing impact
other addition disposition, as as currently to in considering the third dispositions pursuing In well acquisition the smaller we’re Sellbytel certain opportunities. quarter
Geographically, while mixed was the by quarter. European for the our and quarter, basis for on regions our As geography a expect net million to of and discussed, X% in our to for the fourth we approximately result by global third the positive a the way. and of second quarter as discipline, X% previously revenue organic quarter, finally, full to $XX Asian growth up XXXX. or in X.X% and reduction year X.X% X% continue the lead And the
Slide negative While Execution in difficult of six by performance and & American performance discipline. XXXX, shows results negatively Canadian quarter. strong our comps From Experience healthcare slightly the Support Consumer by North in CRM businesses our quarter. our by CRM the mix agencies to lagged impacted X.X%, business our was we QX disciplines, our U.S. our saw about of sluggish the businesses while faced in
split XX% The second advertising marketing quarter, the was services. XX% for and
As negative a of for the national the businesses, Experience growth led profit not for for Support our on U.S. media businesses and CRM Direct X.X%. strength continuing by and was continued performance be agencies. by was growth in our while organic was global branding our in facing by CRM XXXX up performance. experience Execution from digital advertising & continues with our X.X% marketing their to organic X.X%. a research growth events and while sluggish up shopper discipline difficult from were discipline, also up our production specialty lagged. quarter, our agencies agencies quarter organic advertising the PR partially offset of for QX Consumer positive to growth mix comparison in to X.X% Advertising’s marketing and Europe. solid was consulting
this this year. way And X.X%, were agencies U.S. our was by Asia Elsewhere, led of up positive, the both performances since down seen America Latin the the we’ve beginning quarter. improvement again the was and also and Healthcare in Solid quarter. UK Continental the while Europe the continuing
While of seven, driven On during this saw regions. by business, growth domestically also positive the was and in was for quarter’s for split Europe, Asia of across for regional which East America, America, growth UK, XX% and the the the Africa in remainder for Asia, Pacific, mix North strong you X% can and performances see slide XX% the markets. all Latin details rest the for Middle quarter, the X% XX% we
details marginally to revenue and performance was businesses X.X% our Canadian from agencies. in negative of U.S. our Turning North America our region. from Organic the performance by to due weakness down growth
performances PR when So, UK we that Healthcare Support CRM saw the was Experience, disciplines difficult growth region & comp from softness. strong was The facing The organic agencies. the their positive advertising a continued in XXXX over and CRM organically Execution QX was to Consumer and down X%. of our X.X% in market
returning While the research rest businesses organically to and our to and continued performances field all quarter, for Europe Europe was and growth growth continue in quarter. only strong In Korea, continued up and well. The continued this meaningful in performances Greater Eurozone in marketing, South as had positive advertising, all for the across The outside major of our in market Australia, and New Latin had Zealand Ireland its the Spain was see and offset in growth improvement, to underperforming decreases and region, quarter. XXXX. China, India, QX with those of we organic organic up PR markets time first X.X% XX% were region of X.X% lag. Germany the quarter. also Asia organic positive Netherlands to the since the including Organic events Italy media we growth Brazil second Japan America France, the solid in the so region, be Pacific performances. up modest while
And turmoil However, and East that in saw the our significant hurdle smallest in in market. Middle growth solid Mexico the region, ongoing we Colombia. region, Elsewhere down. was a Africa, political presents and
projects non-recurring the our events decrease in last quarter, case the the was in and reduction activity within was the by by in As a the media region. clients businesses driven region
first cash can of flow months Turning to the first capital, see working an that million over changes you generated the of we XXXX. year, flow cash increase XX slide six in $XXX of On our almost including half free the in performance.
line slide As our to million, uses including common reflecting on shareholders, shareholders be more from repurchases under $XXX primarily footprint of under million; our we stock expenditures employee paid reconfigure free efficient. during And about million were year-to-date. were of million the $XXX year. Acquisitions, cash our for our just earn-out and issuances totaled paid outspent flow our to the $XX net totaled cash we received plan half with dividends $XXX real as payments spending last proceeds million. All-in, interest share of $XXX estate XX, in stock totaled to primary dividends non-controlling million. first activity Capital our increased repurchase by $XX our
slide XX, structure capital to quarter. regarding our Turning end the the at of
billion. $X.X is Our shade just total a debt under
the which the operating quarter million uses $X.X capital historically debt changes typical to compared our exchange working the of half $XXX our the which result debt primarily $XXX cash was of in XXXX by Compared in of of $XXX and XX, first of decreasing million. that position generating flow was XX, million occur little XXXX, million. by in cash XX approximately is rates million. to rates, the use June on exchange and The of at capital by past cash which a months. cash cash the cash The to down about year, result by at $XX flow a our the This related over in free net in billion effective the over million by was of balance approximately $XX year. past XX, June the end net December effective reduced was cash our free billion, the our Our of $X.XX $XX offset increase net over partially positively cash balance debt yearend Decrease reduced XXXX. impacted up excess
for ratios, debt they our As solid. remain
was Our year-over-year X.X times, X.X and ratio decreased but debt EBITDA in quite ratio total ratio times strong. our debt to remains to expense, the due interest XX.X EBITDA times. And our to increase our was coverage net interest
XX. slide to Turning
the combination development a manage and build well-focused initiatives internal of We continue Company priced through prudently acquisitions. and to
call cumulative shareholders net of and cumulative the And which share from billion, the Both on capital on XXXX the on be And including impacted with cash resulting years. our XX, forward. ratio during we through of other on charge decade. return XXXX, the bars open of the you. going our XXX% our point, the the the materials the both invested XX, was particularly last repurchases, that we’ve concludes impact the shareholders lower that cumulative our in the dividends act. for than year-over-year QX And our connection this XX.X%. the track impact that return at prepared cash return to the number we the totals took net ratio the more due was to plus over The results payout show June finally, questions. top XX to while in on $XX.X cumulative included for in equity our we’re $XX.X return move over of income months, slides billion. which But to ratios, we as XX note equity operator by For slide was additional XX.X%, tax the return to sum line on of same past shows period will remarks. chart a a tax in the passage of tax supplemental positive ask your Thank well we offset have to rate of But, expect review. last in excess presentation Please
