Interpublic revenue rises 8% on higher ad spending in US
Tuesday, 28 October 2014 01:13
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Reuters: Advertising company Interpublic Group of Cos Inc reported quarterly revenue above analysts’ expectations, helped by higher ad spending by U.S. businesses.
The world’s No.4 ad firm also said it could exceed its organic revenue growth target of 4% for the full year ending December.
U.S. companies such as toymaker Mattel Inc and Kraft Foods Group Inc have been increasing their marketing and advertising budgets to encourage consumers to spend more.
Interpublic, whose clients include General Motors Co, Unilever Plc and Johnson & Johnson, reported organic revenue growth of 6.3% in the third quarter ended Sept 30.
Organic revenue from the United States, Interpublic’s biggest market, rose 7.9%, while international organic revenue increased 4.2%.
Interpublic, home to agencies such as McCann Erickson and FCB, said overall revenue rose to $1.84 billion in the quarter, from $1.70 billion a year earlier.
Net income available to common stockholders rose to $89.7 million, or 21 cents per share, from $45.4 million, or 11 cents per share.
Analysts on average had expected an adjusted profit of 21 cents per share on revenue of $1.78 billion, according to Thomson Reuters I/B/E/S. Larger rival Omnicom Group Inc said it would exceed its full-year organic revenue growth target after reporting a 7.4% rise in quarterly revenue.
