GO
Loading...

UPDATE 1-Interpublic revenue falls on lower client spending

Friday, 26 Oct 2012 | 11:48 AM ET

Oct 26 (Reuters) - Interpublic Group of Cos, home to advertising agencies McCann Erickson and Draftfcb, reported a fall in revenue on lower spending by customers and some account losses in 2011.

Interpublic's strong growth in emerging economies and in its digital business failed to offset rising caution among clients and loss of some customers, Chief Executive Michael Roth said.

The company, whose shares were down 8 percent in premarket trading, lost accounts with Microsoft Corp and household products company SC Johnson last year.

Larger rivals WPP Plc and Omnicom Group Inc have warned of a slowdown particularly in Continental Europe.

Third-quarter revenue at Interpublic, the second-biggest U.S. advertising and marketing group, fell 3.2 percent to $1.67 billion.

Net income fell to $68.7 million, or 15 cents per share, from $208.1 million, or 40 cents per share, a year earlier.

The company recorded a pre-tax gain of $132.2 million for the third quarter of last year from the sale of half of its 0.4 percent stake in Facebook Inc.

Interpublic shares rose sharply in August after a report that French advertising agency Publicis Groupe is weighing a bid for the company. Publicis later denied the report.

Interpublic shares, which closed at $10.55 on Thursday on the New York Stock Exchange, were trading at $9.71 before the bell.

  Price   Change %Change
IPG
---