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Omnicom Reports Third Quarter 2010 Results

NEW YORK, Oct 19, 2010 /PRNewswire via COMTEX/ --

Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the third quarter of 2010 increased 5.4% to $174.6 million from $165.6 million in the third quarter of 2009. Omnicom's diluted net income per common share in the third quarter of 2010 increased 7.5% to $0.57 per share from $0.53 per share in the third quarter of 2009.

Worldwide revenue increased 5.5% to $2,994.6 million from $2,837.6 million in the third quarter of 2009. Domestic revenue for the third quarter of 2010 increased 8.4% to $1,617.1 million compared to $1,491.2 million in the third quarter of 2009. International revenue increased 2.3% to $1,377.5 million compared to $1,346.4 million in the third quarter of 2009.

Omnicom's net income for the nine months ended September 30, 2010 increased 3.1% to $581.2 million from $563.5 million in the same period in 2009. Omnicom's diluted net income per common share for the nine months ended September 30, 2010 increased 4.4% to $1.88 per share in 2010 from $1.80 per share in the same period in 2009.

Worldwide revenue for the nine months ended September 30, 2010 increased 5.9% to $8,955.7 million from $8,454.9 million in the same period in 2009. Domestic revenue for the nine months ended September 30, 2010 increased 6.6% to $4,846.7 million from $4,548.0 million in the same period in 2009. International revenue for the nine months ended September 30, 2010 increased 5.2% to $4,109.0 million from $3,906.9 million in the same period in 2009.

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 third quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

Omnicom Group Inc.


(Unaudited)

(Dollars in Millions, Except Per Share Data)


Three Months Ended September 30,

2010

2009




Revenue

$2,994.6

$2,837.6




Operating expenses, excluding amortization of intangibles

2,662.5

2,528.1




Earnings before interest, taxes and amortization of intangibles (a)

332.1

309.5




Amortization of intangibles

18.0

14.7




Operating income

314.1

294.8




Net interest expense

29.8

28.9




Income before income taxes

284.3

265.9




Income tax expense

96.9

90.5




Income from equity method investments

8.2

7.3




Net Income

195.6

182.7




Less: Net income attributed to noncontrolling interests

21.0

17.1




Net Income - Omnicom Group Inc.

174.6

165.6




Less: Net income allocated to participating securities

1.7

1.8




Net income available for common shares

$172.9

$163.8







Net Income per common share - Omnicom Group Inc.



Basic

$0.58

$0.53

Diluted

$0.57

$0.53







Weighted average shares (in millions)



Basic

299.3

308.6

Diluted

303.5

311.6




Dividend declared per common share

$0.20

$0.15


(a) Earnings before interest, taxes and amortization of intangibles ("EBITA") is a non-GAAP financial measure within the meaning of applicable SEC rules and regulations. Management uses EBITA as an additional operating performance measure, which excludes acquisition related amortization expense, because it believes that EBITA is a useful measure to evaluate the performance of our businesses. EBITA is not, nor should not be used as a substitute for Operating Income, as determined in accordance with GAAP.


Omnicom Group Inc.


(Unaudited)

(Dollars in Millions, Except Per Share Data)


Nine Months Ended September 30,

2010

2009




Revenue

$8,955.7

$8,454.9




Operating expenses, excluding amortization of intangibles

7,884.4

7,438.4




Earnings before interest, taxes and amortization of intangibles (a)

1,071.3

1,016.5




Amortization of intangibles

50.7

41.2




Operating income

1,020.6

975.3




Net interest expense

77.7

72.1




Income before income taxes

942.9

903.2




Income tax expense

320.8

308.9




Income from equity method investments

23.1

20.5




Net Income

645.2

614.8




Less: Net income attributed to noncontrolling interests

64.0

51.3




Net Income - Omnicom Group Inc.

581.2

563.5




Less: Net income allocated to participating securities

5.6

6.6




Net income available for common shares

$575.6

$556.9







Net Income per common share - Omnicom Group Inc.



Basic

$1.90

$1.81

Diluted

$1.88

$1.80







Weighted average shares (in millions)



Basic

302.7

308.0

Diluted

306.9

309.5




Dividend declared per common share

$0.60

$0.45


(a) Earnings before interest, taxes and amortization of intangibles ("EBITA") is a non-GAAP financial measure within the meaning of applicable SEC rules and regulations. Management uses EBITA as an additional operating performance measure, which excludes acquisition related amortization expense, because it believes that EBITA is a useful measure to evaluate the performance of our businesses. EBITA is not, nor should not be used as a substitute for Operating Income, as determined in accordance with GAAP.


SOURCE Omnicom Group Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Omnicom Group Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.