Despite the almost doubling of its losses, there are some positive signs at the company. Revenue for the first quarter of the year is standing at $1.4bn (£782m), up 6% compared with the first quarter of 2003. This reflects a strong performance in the US, where revenue rose by 3.9%. Outside the US, revenue was down by 3%.
The company said that it saw indications of a more favourable business climate emerging in the US, and that revenues were strengthening at its lead advertising agency network McCann Erickson.
Reported operating margin for the quarter fell to 0.7%, or 4.7% excluding restructuring, compared with 1.6% in the first quarter of 2003. Operating margin is a key indicator of performance and its margin compares poorly with rivals WPP Group's 13% and Publicis Groupe's 14%. Interpublic's operating margin is worse than Havas's most recent figure of 8.3%.
The latest set of results come as Interpublic nears the end of a phase of restructuring as it seeks to deal with debt accrued after an acquisition spree in the late 1990s.
David Bell, chairman and chief executive of Interpublic, said: "Performance in the quarter provides further evidence that our turnaround is successfully reaching the end of its initial phase."
The company has slashed its net debt from $2.1bn this time last year to $894m this year. This comes following a series of disposals at the group, most recently of its British motor racing interests.
Bell added: "We remain committed to moving the company through a change process as rapidly as possible. We have made significant strides in the first year, but there is still much work to be done."
New-business wins for the quarter include a slice of the $400m CRM account for Microsoft for MRM Partners, and Miller Genuine Draft.
Shares in the company, trading on the New York Stock Exchange, fell by four cents when the market opened this morning to trade at $15.50.
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