Interpublic’s revenue rises 3.9%

Monday, 25 April 2016 00:00 - - {{hitsCtrl.values.hits}}

Reuters : Advertising company Interpublic Group of Companies Inc reported better-than-expected quarterly revenue as businesses in the United States boosted advertising budgets, helping soothe the impact of a strong dollar on overseas sales.

Interpublic, one of the “big four” ad agencies along with bigger New York peer Omnicom Group Inc, Britain’s WPP Plc and Paris-based Publicis Groupe SA, said revenue from United States jumped 8.7% in the quarter ended March 31.

Top ad agencies worldwide have benefited in recent times with businesses spending more on marketing efforts, boosting digital ad spend as money from prints ad dry up.

Omnicom and Publicis, the world’s No.2 and No.3 ad agencies, on Tuesday reported higher quarterly revenue, boosted by spending in North America.

Interpublic, the agency behind iconic ads such as Coca-Cola’s 1971 “Hilltop” commercial as well as French cosmetics company L’Oreal’s “Because you’re worth it” tagline, said it saw traction from both existing clients as well as new business wins.

“In terms of client sectors, we were led by increases in the tech and telecom, healthcare, food and beverage and retail sectors,” Michael Roth, Interpublic’s chief executive since 2005, said on a call with analysts.

The company, which owns agencies such as McCann and FCB, counts General Motors, Unilever and Johnson & Johnson among its top clients.

International sales, which make up about 37% of total revenue, fell 3.2% to $650.8 million in the quarter, with the strong dollar eroding income.

Net income available to company’s common stockholders was $5.4 million, in the first quarter ended March 31, compared with a loss of $1.8 million, a year earlier.

Excluding one-time items, the company broke even on a per-share basis, meeting analysts’ average estimate, according to Thomson Reuters I/B/E/S.

Revenue, for the company which was incorporated in 1930 under the name McCann-Erickson Inc, rose 3.9% to $1.74 billion, trumping expectations of $1.71 billion.