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Jun 30, 2021

Omnicom Q2 2021 Earnings Report

Reported a strong recovery with significant revenue and profit growth compared to the prior year, which was heavily impacted by the COVID-19 pandemic.

Key Takeaways

Omnicom Group Inc. reported a significant recovery in Q2 2021, with revenue increasing by 27.5% to $3,571.6 million and net income reaching $348.2 million compared to a net loss in Q2 2020. The company's performance benefited from organic growth across all fundamental disciplines and regional markets, reflecting a rebound from the negative impacts of the COVID-19 pandemic.

Worldwide revenue increased by 27.5% to $3,571.6 million, driven by a 24.4% increase in revenue from organic growth.

Net income was $348.2 million, a significant improvement compared to a net loss of $24.2 million in Q2 2020.

Diluted net income per share was $1.60, compared to a diluted net loss per share of $0.11 in Q2 2020.

Operating profit increased by $505.9 million to $568.4 million, with the operating margin rising to 15.9%.

Total Revenue
$3.57B
Previous year: $2.8B
+27.5%
EPS
$1.46
Previous year: $0.92
+58.7%
Organic Growth
24.4%
Previous year: -23%
-206.1%
Operating Margin
15.9%
Previous year: 2.2%
+622.7%
Effective Tax Rate
24.9%
Previous year: 143.1%
-82.6%
Gross Profit
$725M
Previous year: $202M
+259.5%
Cash and Equivalents
$4.39B
Previous year: $3.28B
+33.7%
Free Cash Flow
$155M
Previous year: $118M
+31.3%
Total Assets
$25.7B
Previous year: $22.6B
+13.3%

Omnicom

Omnicom

Forward Guidance

Global economic conditions will continue to be volatile as long as the COVID-19 pandemic remains a public health threat, including as a result of new information concerning the severity of the pandemic, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients' spending plans.