Omnicom Group (OMC), a global marketing and corporate communications company, has recorded a marginal rise of 0.20 percent in profit for the quarter ended Mar. 31, 2014. The company earned $205.50 million or $0.77 a share in the compared with $205.10 million or $0.76 a share a year ago.
Analysts on average had predicted loss of $1.94 a share.
Revenue during the first-quarter grew 3.04 percent to $3502.20 million from $3398.90 million in the last year period.
Total expenses as a percentage of revenues increased to 89.07 percent from 89.06 percent in the same period last year. That resulted in contraction of 1 basis points in operating margin to 10.93 percent.
The company disclosed operating income of $382.70 million, compared with an operating income of $371.70 million in the last year period.
Cash flow
Omnicom Group has spent $430.30 million in cash to meet operating activities during the quarter, as against cash outgo of $209.70 million in the last year period.
The company has spent $42.50 million in cash to meet investing activities during the quarter, as against cash outgo of $36.40 million in the year period. It has made net capital expenditure of $42.50 million during the quarter, which was higher by 11.26 percent or $4.30 million from a year ago.
The company has spent $156.90 million in cash to meet financing activities during the quarter, as against cash outgo of $284.30 million in the last year period.
The company has borrowed net of $1.70 million through debt during the quarter. It has spent net of $17.30 million on common stock repurchases. The company's cash dividend payment increased 468.26 percent or $107.70 million to $130.70 million.
As on Mar. 31, 2014, Omnicom Group's cash balance stood at $2082.10 million.
Debt Position
As at Mar. 31, 2014, the company's total debt stood at $4039.20 million.
The company's total debt accounts for 19.15 percent of total assets on Mar. 31, 2014.
The company's debt to equity ratio was at 0.96 as on Mar. 31, 2014.
Shares of Omnicom Group fell by $1.62 or 2.27 percent to close at $69.87 on Tuesday.