February 05, 2025 10:38 GMT
COMMUNICATIONS: Omnicom Q4 Results
COMMUNICATIONS
OMC Baa1/BBB+ Curve Steady
Looks neutral for credit though equity is indicating lower; flat dividends may have disappointed though management has been flagging increases post-Interpublic. Nothing of note on that deal; progressing well towards a H2 close with synergy guidance confirmed.
- Q4 org revs +5.2% (vs. +4.6% cons). Q4 EBITDA +6.5% (-1.9% vs. BBG cons).
- FY CFO USD 2bn vs. USD 1.9bn YoY (+21% vs. cons). FY Net FCF (after payouts) USD -0.1bn.
- Reported gross leverage of 2.4x vs. 2.4x at FY23 with net leverage 0.7x vs. 0.5x at FY23.
- FY25: org rev +3.5-4.5% (FY24: +5.2%, cons: +3.9%), EBITDA margins +10bp.
- Flagged that they will address their USD line maturing April 26 after the IPG deal closes.
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