SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 19, 1998
Omnicom Group Inc.
(Exact name of registrant as specified in its charter)
New York
(State or other jurisdiction of incorporation)
1-10551 13-1514814
(Commissioner File Number) (IRS Employer Identification Number)
437 Madison Avenue
New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 415-3600
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Item 5. Other Events
On February 19, 1998, Omnicom Group Inc. issued the press release attached
hereto as Exhibit 99 and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits. The following exhibits accompany this Report:
Exhibit Number Exhibit Description
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99 Omnicom Group Inc. press release dated February 19, 1998
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
OMNICOM GROUP INC.
Date: March 4, 1998 By: /s/ Barry J. Wagner
--------------------
Barry J. Wagner
Secretary and General Counsel
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Omnicomnews
Contact: Fred Meyer
212-415-3631
FOR IMMEDIATE RELEASE
NEW YORK, FEBRUARY 19, 1998 - Omnicom Group Inc. (OMC-NYSE) today announced that
net income for the year increased 26% to $222.4 million in 1997 from $176.3
million in 1996. Diluted earnings per share increased 22% to $1.37 per share in
1997 from $1.12 per share in 1996. It is the eleventh consecutive year since its
formation that Omnicom has reported record earnings.
Worldwide revenues from commission and fee income increased 18% to
$3,124.8 million in 1997 from $2,641.7 million in 1996. Domestic revenues
increased 17% to $1,616.8 million in 1997 from $1,384.4 million in 1996.
International revenues increased 20% to $1,508.0 million in 1997 from $1,257.3
million in 1996.
Net income in the fourth quarter of 1997 increased 24% to $74.5 million as
compared to $60.2 million in the fourth quarter in 1996. Diluted earnings per
share for the fourth quarter increased 22% to $0.45 per share in 1997 from $0.37
per share in 1996.
Worldwide revenues from commission and fee income increased 19% to $895.1
million in the fourth quarter of 1997 from $751.8 million in the same period in
1996. Domestic revenues increased 16% to $425.9 million in 1997 from $366.6
million in 1996. International revenues increased 22% to $469.2 million in 1997
from $385.2 million in 1996.
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Omnicom Group Inc.
(Unaudited)
(in Thousands of Dollars, Except Per Share Data)
Percent
-------------------------- Increase
Three Months Ended December 31 1997 1996 (Decrease)
- ------------------------------ ---------- ------------ ----------
Commission and fee income $ 895,056 $ 751,829 19%
Operating and interest expenses 774,425 651,874 19%
Income before income taxes 120,631 99,955 21%
Income taxes 50,294 40,706 24%
Income after income taxes 70,337 59,249 19%
Equity in affiliates 14,062 9,925 42%
Minority interests (9,942) (8,944) 11%
Net income $ 74,457 $ 60,230 24%
Earnings per share(*)
Basic $ 0.47 $ 0.38 24%
Diluted $ 0.45 $ 0.37 22%
Dividend declared per share (*) $ 0.125 $ 0.10 25%
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(*) All per share amounts have been adjusted to reflect a two-for-one stock
split in the form of a 100% stock dividend effective December 16, 1997.
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Omnicom Group Inc.
(Unaudited)
(in Thousands of Dollars, Except Per Share Data)
Percent
-------------------------- Increase
Year Ended December 31 1997 1996 (Decrease)
- ------------------------------ ----------- ------------ ----------
Commission and fee income $ 3,124,813 $ 2,641,667 18%
Operating and interest expenses 2,743,568 2,336,436 17%
Income before income taxes 381,245 305,231 25%
Income taxes 156,484 123,639 27%
Income after income taxes 224,761 181,592 24%
Equity in affiliates 30,089 20,510 47%
Minority interests (32,435) (25,773) 26%
Net income $ 222,415 $ 176,329 26%
Earnings per share(*)
Basic $ 1.40 $ 1.17 20%
Diluted $ 1.37 $ 1.12 22%
Dividend declared per share (*) $ 0.45 $ 0.375 20%
- ----------
(*) All per share amounts have been adjusted to reflect a two-for-one stock
split in the form of a 100% stock dividend effective December 16, 1997.
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