Omnicom Group Q2 diluted net income per share increased 5%Christian Fernsby ▼ | July 17, 2019
Omnicom Group announced that its diluted net income per share for the second quarter of 2019 increased eight cents, or 5.0%, to $1.68 per share versus $1.60 per share for the second quarter of 2018.
Omnicom Group Omnicom's worldwide revenue in the second quarter of 2019 decreased 3.6%
Primarily due to the negative effects of foreign exchange rates and disposition activity in excess of acquisitions over the past year, Omnicom's worldwide revenue in the second quarter of 2019 decreased 3.6% to $3,719.8 million from $3,859.6 million in the second quarter of 2018.
The components of the change in revenue included a decrease in revenue from the negative impact of foreign currency translation of 2.6%, a decrease in acquisition revenue, net of disposition revenue of 3.8% and an increase in revenue from organic growth of 2.8% when compared to the second quarter of 2018.
Organic growth in the second quarter of 2019 as compared to the second quarter of 2018 in Omnicom Group's five fundamental disciplines was as follows: Advertising increased 4.4%, CRM Consumer Experience increased 1.9%, CRM Execution & Support decreased 2.6%, Public Relations decreased 1.3% and Healthcare increased 8.4%.
Across Omnicom Group's regional markets, organic growth in the second quarter of 2019 as compared to the second quarter of 2018 was: 3.2% in the United States, 11.8% for Other North America, 5.7% in the United Kingdom, 1.5% for the Euro Markets and Other Europe, and 1.9% for Asia Pacific, while Latin America decreased 2.4% and the Middle East and Africa decreased 8.3%.
Operating profit in the second quarter of 2019 decreased $8.6 million, or 1.5%, to $573.7 million from $582.3 million in the second quarter of 2018.
Omnicom Group's operating margin for the second quarter of 2019 increased to 15.4% versus 15.1% for the second quarter of 2018.
For the second quarter of 2019, Omnicom Group's effective income tax rate was 24.9% compared to 25.8% for the same period in 2018.
The 2019 effective tax rate included an approximately $11 million reduction in income tax expense, primarily from the net favorable settlement of uncertain tax positions in various jurisdictions, which resulted in the recognition of net deferred tax assets during the quarter. ■