Omnicom Posts Q1 2025 Growth in Organic Revenue and Adjusted Earnings, Despite Merger-Related Costs

Omnicom Group Inc. reported revenue of $3.69 billion for the first quarter of 2025, a 1.6% increase compared to the prior year, driven by 3.4% organic growth across key disciplines including Media & Advertising and Precision Marketing. Net income attributable to Omnicom was $287.7 million, down 9.7% from $318.6 million in Q1 2024. Reported diluted earnings per share dropped to $1.45 from $1.59. However, adjusted diluted EPS rose to $1.70 from $1.67, reflecting strong core performance when excluding amortization and $32.7 million in after-tax merger-related costs.

Operating income for the quarter fell 5.5% to $452.6 million, as operating margin declined to 12.3% from 13.2%. The dip was largely due to $33.8 million in costs tied to Omnicom's pending acquisition of The Interpublic Group of Companies (IPG). Adjusted EBITA reached $508.2 million with a stable margin of 13.8%, demonstrating underlying resilience in operational profitability.

Regionally, Latin America led with 14.8% organic growth, followed by Asia Pacific at 6.0% and the U.S. at 4.6%. Europe showed mixed results, while the Middle East & Africa saw a 9.3% decline. Across disciplines, growth was strongest in Media & Advertising (+7.2%) and Precision Marketing (+5.8%), while Public Relations (–4.5%), Healthcare (–3.2%), and Branding & Retail Commerce (–10.0%) lagged.

Expenses totaled $3.24 billion, rising 2.7% year-over-year, mainly due to higher third-party service and incidental costs. SG&A rose 38.2% to $117.9 million, driven by acquisition activity.

Looking ahead, Omnicom acknowledged increased economic uncertainty but affirmed confidence in its diversified portfolio and strong balance sheet. The company remains focused on completing the IPG merger in the second half of 2025, which is expected to unlock new growth and cost synergy opportunities.

The firm declared a quarterly dividend of $0.70 per share, unchanged from the prior year.

Omnicom Group and Interpublic Group Receive FTC Second Request for Merger Review
March 13, 2025 – Omnicom Group Inc. (NYSE: OMC) and The Interpublic Group of Companies, Inc. (NYSE: IPG) have announced that they received a Second Request from the Federal Trade Commission (FTC) regarding the regulatory review of their proposed merger.

Key Developments:
The merger agreement, originally signed on December 8, 2024, proposes that IPG will merge with and become a wholly owned subsidiary of Omnicom.
Special stockholder meetings for both companies are scheduled for March 18, 2025, to approve the transaction.
The FTC's Second Request extends the waiting period under the Hart-Scott-Rodino Act, delaying the deal’s expected timeline.
The merger remains subject to stockholder approval, regulatory clearances, and other closing conditions.
Company Statement:
Omnicom and IPG reaffirm their commitment to completing the merger, emphasizing that the combination will strengthen advertising, marketing, and corporate communication services for global clients. Both companies continue to fully cooperate with the FTC’s review process.

Omnicom and Interpublic Group Merger Under FTC Antitrust Review
New York, NY – March 13, 2025 – Omnicom Group Inc. (NYSE: OMC) and Interpublic Group (NYSE: IPG) have received a Second Request from the Federal Trade Commission (FTC), requiring additional information regarding their pending merger. This step extends the regulatory review process under the Hart-Scott-Rodino Antitrust Improvements Act (HSR).

Key Merger Details
Announced: December 8, 2024
Structure: IPG to merge with and become a wholly owned subsidiary of Omnicom
Stockholder Vote: Special meetings scheduled for March 18, 2025
Regulatory Approval: Subject to FTC review and expiration of the HSR waiting period
Implications of the FTC’s Second Request
The merger cannot proceed until regulatory concerns are resolved.
The request signals potential competition concerns in the advertising sector.
Both companies remain committed to completing the merger, pending stockholder and regulatory approvals.

Omnicom Group Inc. filed a Form 8-K regarding its planned merger with The Interpublic Group of Companies (IPG). The merger agreement, approved by both companies' boards, will merge IPG into a wholly owned subsidiary of Omnicom. In connection with this, Omnicom and IPG have filed a joint proxy statement and are holding special stockholder meetings on March 18, 2025, to vote on the merger.

Since the merger announcement, three lawsuits have been filed by stockholders of both companies, alleging disclosure deficiencies in the joint proxy statement. To mitigate risks and avoid delays, Omnicom and IPG have voluntarily supplemented the proxy statement with additional disclosures, though they deny any wrongdoing.

The supplemental disclosures provide details about the merger negotiations, financial projections, and expected synergies. They also outline the roles of financial advisors PJT Partners and Morgan Stanley, governance changes, and executive compensation arrangements. The filing includes cautionary statements about forward-looking risks and legal disclaimers.

Omnicom and IPG continue to urge stockholders to review the registration statement and proxy materials before making voting or investment decisions. The merger is subject to stockholder and regulatory approvals, and no assurances can be made about its successful completion.