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Mar 31, 2021
Omnicom Q1 2021 Earnings Report
Reported an increase in revenue and net income compared to the first quarter of 2020, despite challenges from the COVID-19 pandemic.
Key Takeaways
Omnicom Group reported a 0.6% increase in worldwide revenue to $3,426.9 million and a net income of $287.8 million for the first quarter of 2021, compared to $258.1 million in the first quarter of 2020. The company experienced organic revenue decline of 1.8% primarily due to the COVID-19 pandemic but expects positive organic revenue growth beginning in the second quarter of 2021. Operating profit increased by 10.8% to $465.4 million.
Worldwide revenue increased by 0.6% to $3,426.9 million.
Net income increased to $287.8 million, or $1.33 per share.
Operating profit increased by 10.8% to $465.4 million.
EBITA increased by 10.0% to $485.3 million with EBITA margin increasing to 14.2%.
Omnicom
Omnicom
Forward Guidance
The company expects to achieve positive organic revenue growth beginning in the second quarter of 2021 and for the full year 2021.
Positive Outlook
- Expects to achieve positive organic revenue growth beginning in the second quarter of 2021
- Expects to achieve positive organic revenue growth for the full year 2021.
- Impact from the COVID-19 pandemic on the global economy appears to be moderating in several markets
- Issued $600 million of 4.20% Senior Notes due 2030 to strengthen liquidity
- Entered into a $400 million 364-day revolving credit facility
Challenges Ahead
- Continued to experience the negative impact of the pandemic on organic revenue compared to the same period in the prior year.
- Global economic conditions will continue to be volatile depending on several factors, including new information concerning the severity of the pandemic.
- Government actions to mitigate the effects of the pandemic in the near-term.
- The resulting impact on clients' spending plans.
- Global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy moderates.