Omnicom CEO John Wren touts holding company’s cash reserves

The network has $4.3 billion in cash and cash equivalents, Wren says

Omnicom CEO John Wren
Omnicom CEO John Wren

NEW YORK: Omnicom chairman and CEO John Wren said the holding company's cash flow will decrease because of the coronavirus pandemic, but the network has $2.5 billion-worth of credit it can draw from if needed.

Wren said in a statement on Wednesday that the company's first priority is maintaining liquidity and that it has been trying to soften the economic blow of the pandemic by addressing discretionary costs, cash position and liquidity. However, he added that Omnicom has access to a $2.5 billion multi-currency revolving credit facility that doesn't expire until 2025, as well as the capital markets.

Wren said that as of the end of last year, the company had $4.3 billion-worth of liquidity, including operating cash flow, cash and cash equivalents and short-term investments. He also noted that Omnicom has $5.1 billion in debt in the form of corporate bonds. However, Wren added that only $1.4 billion of the notes mature in any given year, and none mature before 2022.

Omnicom posted global revenue of $4.1 billion in Q4, up 3.5% organically from 2018. For 2019, the holding company reported net income of $1.3 billion.

Its PR firms saw an organic revenue drop of 2.5% to $358.3 million in Q4 2019 and a decrease of 2% for the full year to $1.3 billion. PR accounted for 9.2% of the overall company's billings last year and 8.6% of Omnicom's quarterly sales, with advertising making up the lion's share. The agencies within Omnicom Public Relations Group include FleishmanHillard, Ketchum, Marina Maher Communications and Porter Novelli.

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