Global advertising agency Interpublic Group (IPG) on Friday revealed Q2 financial results slightly below expectations and warned that the full year figures are likely to be below analysts’ current consensus.
A slowing in marketing spend knocked IPG’s revenue from US clients back by 7.3%; international revenue remained flat. Earnings per share were down 43% at $0.31 and organic growth dropped 3%.
John Dooner, IPG’s CEO, described the results as ‘not acceptable’, adding that the company should have implemented more effective cost-cutting measures in the face of the advertising and economic slowdown.
Revenues are expected to be flat in the second half and IPG is planning to cut its workforce by 10%, or 3,500 jobs, by the end of the year.
