The results were worse than analysts had been predicting, representing a loss of three cents a share, compared with forecasts of earnings of nine cents a share. Revenue rose by 3% to $1.54bn (£845m), while organic revenue crept up by 0.3%.
Interpublic, owner of agencies including McCann Erickson and Initiative Media, said that a number of its companies had performed well, and it had recorded new-business wins including Dell Computer, Pfizer's Viagra and the US clothing brand Old Navy. Among its losses were Lowe's HSBC account.
Interpublic has been plagued by financial difficulties following an acquisition spree in the late 1990s and an accounting scandal. It has undertaken a programme to put its financial performance back on course, including the disposal of its British motor racing assets.
However, this has led to hefty charges for the company, including an $80m hit in the quarter to terminate Interpublic's contract to run the British Grand Prix.
David Bell, chairman and CEO of Interpublic, said: "The most promising news this quarter was on the top line. We posted our fifth consecutive sequential improvement in organic revenue and saw a return to organic growth for the first time since 2001. A number of our companies -- in advertising, CRM and public relations -- posted strong top-line domestic results. I'm pleased with our progress in closing the growth gap with the competition."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
