Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Omnicom Group    OMC

OMNICOM GROUP

(OMC)
  Report  
Delayed Quote. Delayed Nyse - 09/20 06:30:00 pm
77.87 USD   -0.80%
09/19OMNICOM GROUP : Ex-dividend day for
FA
09/17OMNICOM : at Advertising Week 2019
PU
09/13VELOCITY COMMERCE GROUP : Launches S2 CommerceView
PR
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Omnicom Defends Its Data Strategy After Rivals Make Big Deals

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/17/2019 | 12:22pm EDT

By Alexandra Bruell

Omnicom Group Inc. continued to justify its decision to rent data services instead of making large acquisitions, a sign that the ad holding company will continue to swim against the tide of its competitors.

"We prefer to rent the right data and technology that can improve our agility and client integration at any point in time rather than investing in legacy data assets and platforms that can easily become obsolete," said Omnicom Chief Executive Officer John Wren during a second-quarter earnings call Wednesday.

Omnicom considered acquiring the two large data firms that were recently sold to ad-industry rivals, Mr. Wren acknowledged, but didn't see enough upside. Although he didn't name names, Mr. Wren likely was likely referring to Interpublic Group of Cos.' $2.3 billion acquisition of Acxiom Corp.'s Marketing Solutions business unit last summer and Publicis Groupe SA's $4.4 billion purchase of Epsilon this year.

Integrating such major acquisitions would create new challenges at a time when ad companies are coping with ambiguities around new data privacy rules in Europe and in the U.S., Mr. Wren said.

"There was no [return on investment] on the transactions for us," said Mr. Wren. "Our systems have always been open and unbiased and we think that's critical."

Omnicom owns large creative and media buying firms, including BBDO, DDB and OMD.

Mr. Wren also bashed consulting firms, which have been increasingly investing in ad services.

"They put in enterprise systems and do fancy things and pretend that they're in our business, but in fact they don't have any creative assets, " he said. "Creating a global network of creative assets is not a simple matter."

While macroeconomic uncertainty looms around the world, it is not currently having a serious impact on Omnicom's business, Mr. Wren said.

"We cannot predict what's going to happen with Brexit," he said. "The good news is we don't have a lot of financial services clients in the U.K. We don't know what's going to happen with tariffs and what the reactions are going to be. We remain cautious in trying to gain market share in all the places we operate in."

Omnicom reported a 3.6% decrease in revenue in the second quarter, to $3.7 billion. The revenue drop met analyst expectations.

The company attributes the dip to the effect of foreign exchange rates and spinoffs exceeded acquisitions over the past year.

Organic revenue, a key metric that strips out currency effects and acquisitions, increased 2.8% in the quarter compared with the same period last year. Organic revenue grew 3.2% in the U.S.

Earnings per share in the quarter rose to $1.68 from $1.60. Operating profit in the quarter decreased 1.5% to $574 million.

The revenue results are a slight improvement from the first quarter, when the company reported a 4.4% decrease in revenue and a 2.5% increase in organic revenue.

Omnicom shares were down 2.8% at $81.66 in late-morning trading.

Write to Alexandra Bruell at alexandra.bruell@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRITISH POUND (EUR/GBP) 0.07% 0.8827 Delayed Quote.-1.93%
INTERPUBLIC GROUP -0.75% 21.16 Delayed Quote.2.57%
OMNICOM GROUP -0.80% 77.87 Delayed Quote.6.32%
PUBLICIS GROUPE 0.41% 46.57 Real-time Quote.-7.01%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on OMNICOM GROUP
09/19OMNICOM GROUP : Ex-dividend day for
FA
09/17OMNICOM : at Advertising Week 2019
PU
09/13VELOCITY COMMERCE GROUP : Launches S2 CommerceView
PR
09/12OMNICOM : School Safety and Data Privacy Outpace Water Conservation, Health and ..
PR
09/10OMNICOM PUBLIC RELATIONS GROUP : Appoints Erin Lanuti to New Chief Innovation Of..
PR
08/27JAVELIN AGENCY : Names Tina Posey CEO
PR
08/09New contract wins help WPP to improved second-quarter trading
RE
08/05OMNICOM : Credera Names Justin Bell as CEO
PU
07/25OMNICOM : Joe Rivas Joins Doremus as Global Chief Executive Officer
PR
07/23OMNICOM : Ari Weiss Elevated to Chief Creative Officer of DDB Worldwide
PR
More news
Financials (USD)
Sales 2019 14 935 M
EBIT 2019 2 131 M
Net income 2019 1 329 M
Debt 2019 1 135 M
Yield 2019 3,34%
P/E ratio 2019 13,0x
P/E ratio 2020 12,3x
EV / Sales2019 1,21x
EV / Sales2020 1,17x
Capitalization 16 939 M
Chart OMNICOM GROUP
Duration : Period :
Omnicom Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends OMNICOM GROUP
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 14
Average target price 81,58  $
Last Close Price 77,87  $
Spread / Highest target 15,6%
Spread / Average Target 4,77%
Spread / Lowest Target -12,7%
EPS Revisions
Managers
NameTitle
John D. Wren Chairman, President & Chief Executive Officer
Philip J. Angelastro Chief Financial Officer & Executive Vice President
John R. Purcell Independent Director
Leonard S. Coleman Lead Independent Director
Linda Johnson Rice Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
OMNICOM GROUP6.32%16 939
WPP GROUP19.06%15 890
PUBLICIS GROUPE-7.01%12 138
INTERPUBLIC GROUP2.57%8 194
JCDECAUX3.02%5 917
HAKUHODO DY HOLDINGS INCORPORATED6.45%5 650