Omnicom Group Inc. (NYSE:OMC) Q2 2019 Earnings Conference Call - Final Transcript

Jul 17, 2019 • 08:30 am ET


Omnicom Group Inc. (NYSE:OMC) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning ladies and gentlemen and welcome to the Omnicom Second Quarter 2019 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

At this time, I'd like to introduce your host for today's conference, Senior Vice President of Investor Relations, Shub Mukherjee. Please go ahead.

Shub Mukherjee

Good morning. Thank you for taking the time to listen to our second quarter 2019 earnings call. On the call with me today is John Wren, Chairman and Chief Executive Officer and Phil Angelastro, Chief Financial Officer. We hope everyone has had a chance to review our earnings release. We have posted to this morning's press release along with the presentation covering the information that we will review this morning. This call is also being simulcast and will be archived on our website.

Before we start, I've been asked to remind everyone to read the forward-looking statements and other information that we have included at the end of our presentation and to point out that certain of the statements made today may constitute forward-looking statements and that these statements are our present expectations and that actual events or results may differ materially. I would also like to remind you that during the course of the call, we will discuss some non-GAAP measures in talking about Omnicom's performance. You can find the reconciliation of those measures to the nearest comparable GAAP measures in the presentation materials.

We are going to begin this morning's call with an overview of our business from John Wren, then Phil Angelastro will review our financial results for the quarter. And then we will open the line for your questions.

John D. Wren

Thank you, Shub. Good morning. I'm pleased to speak to you this morning about our second quarter results.

We had another good quarter with organic growth of 2.8%, which is in line with our internal targets. Total revenue was down 3.6% due to the negative impact of foreign exchange rates and acquisitions, net of dispositions. EBIT margin was 15.4%, an increase of 30 basis points versus the prior year. And EPS for the quarter was up 5% to $1.68 per share. The results continue to demonstrate consistency and diversity of Omnicom's operations, our ability to deliver consumer-centric strategic business solutions to our clients and our best-in-industry creative talent combined with market leading digital, data and analytical expertise.

Organic growth in the quarter was broad-based across our agencies, disciplines and client sectors. Looking first across disciplines, advertising and media was up 4.4% with both advertising and media practices experiencing good growth in the quarter. CRM Consumer Experience was up 1.9%. Our Precision Marketing and digital agencies had double-digit growth in the quarter. This growth was offset by negative performance in our events business, which had difficult comps as compared to the prior year. As expected, CRM Execution & Support was down 2.6%. Healthcare