Omnicom blames profit drop in Q3 on merger costs

OmnicomOmnicom Group Inc. (NYSE-OMC) today announced that its worldwide revenue in the third quarter of 2013 increased 2.5% to $3,490.5 million from $3,406.6 million in the third quarter of 2012. Domestic revenue for the third quarter of 2013 increased 3.2% to $1,815.5 million compared to $1,758.1 million in the third quarter of 2012. International revenue increased 1.6% to $1,675.0 million compared to $1,648.5 million in the third quarter of 2012.

For the quarter ended September 30, 2013, organic growth increased revenue 4.1%. Acquisitions, net of dispositions reduced revenue 1.0% and the impact of foreign exchange rates reduced revenue 0.6%.

Across our geographic markets, organic revenue increased 5.0% in the United States, 7.5% in the United Kingdom and 4.5% in our other markets, primarily from growth in Asia and Latin America, offset by an organic revenue decline of 1.6% in our Euro markets.

The change in organic revenue in the third quarter of 2013 compared to the third quarter of 2012 in our four fundamental disciplines was as follows: advertising increased 4.8%, CRM increased 2.3%, public relations increased 4.6% and specialty communications increased 8.3%.

Third quarter reported GAAP results include $28.1 million of pre-tax charges related to Omnicom’s proposed merger with Publicis Groupe, S.A. pursuant to the Business Combination Agreement entered into on July 27, 2013.

 

Excluding the impact of the merger expenses, our non-GAAP EBITA in the third quarter of
2013 increased $18.7 million, or 4.5%, to $433.3 million from $414.6 million in the third quarter of 2012. Our adjusted non-GAAP EBITA margin for the third quarter of 2013 increased to 12.4% from 12.2% for the same period in 2012

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