Omnicom reports strong 2024 results, announces Interpublic acquisition plans

Omnicom Group has announced robust financial results for the fourth quarter and full year ended December 31, 2024, highlighted by 5.2% organic revenue growth. The company also revealed its intent to acquire Interpublic Group, a move Omnicom anticipates will create significant value for clients and employees.

"Our strong operational execution, with 5.2% organic revenue growth for both the fourth quarter and full year, and even higher growth in adjusted EBITA and adjusted EPS, gives us confidence for continued strength in 2025," said John Wren, Chairman and Chief Executive Officer of Omnicom. "From this position of strength, we are incredibly well prepared for and excited about the complementary combination of businesses and cultures with our proposed acquisition of Interpublic."

Wren emphasized the potential benefits of the merger, stating that the combined entity will offer expanded products and superior creativity, innovation, and effectiveness to clients. He also highlighted the unparalleled data assets the merger will bring together, fueling leading creative, produced at scale, and activated by the world's top-ranked media practice to drive measurable sales. Omnicom anticipates significant upside potential through expected revenue and cost synergies.

Fourth Quarter 2024 Key Highlights:
• Revenue increased 6.4% to $4,322.2 million.
• Organic revenue growth of 5.2%, driven by strength in Media & Advertising, Precision Marketing, and Public Relations.
• Diluted net income per share increased 6.1% to $2.26.
• Adjusted EBITA increased 6.6% to $722.2 million.
Full Year 2024 Key Highlights:
• Revenue increased 6.8% to $15,689.1 million.
• Organic revenue growth of 5.2%.
• Diluted net income per share increased 8.0% to $7.46.
• Adjusted EBITA increased 6.5% to $2,434.5 million.

Omnicom's fourth-quarter organic growth was led by strong performances in Media & Advertising (7.1%), Precision Marketing (9.1%), and Public Relations (10.3%). Geographically, the United States led growth with a 9.9% increase.
The company's full-year results also demonstrated solid growth across key areas, with Media & Advertising (7.8%) and Experiential (15.4%) leading the way. The U.S. market again showed strength with 6.8% growth.

While operating expenses increased, driven in part by acquisition-related costs, Omnicom maintained a strong operating income margin. The company also noted increased interest expense due to higher outstanding debt.

The proposed acquisition of Interpublic is expected to significantly reshape the advertising and marketing landscape. Omnicom believes the combined company will be better positioned to serve clients' evolving needs and deliver innovative solutions in a rapidly changing market. The company anticipates the merger will generate substantial synergies, driving further growth and profitability.

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