In line with others in the industry, Grey, which owns the Grey Worldwide advertising network, media agency MediaCom and the GCI public relations brand, said the current environment "continues to be difficult for marketing communications companies". Net income for the quarter was $4.3m, up from $245,000 for the same period in 2001.
A leap of 111% in consolidated income for the companies to $10.4m was attributed, in part, to changes in accounting rules. Its earnings per share figure grew from 27 cents for the first three months of 2001 to $3.21 for the same period this year.
Last year, Grey, headed by low-profile chairman and CEO Ed Meyer, merged its digital businesses as it sought to cope with the effects of the dotcom bust and the economic downturn.
In a statement, the company said: "Despite the decrease in gross income and higher net interest expense, profit performance improved for the period compared with the previous year because of margin improvement resulting from steps implemented last year and the company's continued focus on cost containment."
Shares in Grey were steady yesterday, prior to the results announcement, valued at $748 each.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .