Global advertising network, Interpublic Group, has reported a third quarter loss of $327.1 million, as it moves into the early stages of its ‘turnaround programme’.
The loss on continuing operations was even higher at, $416.2 million. The difference comes from the $89.1 million made on the sale of NFO WorldGroup to TNS in May this year (see
TNS Shares Jump On $425m NFO Worldgroup Acquisition). NFO was classed as a discontinued operation in Interpublic’s Q3 figures.
Revenues increased by 2.3% during the period, aided by improving market conditions and favourable currency rates. However, on a constant currency basis, revenues were down by 2.4% year on year.
“We are progressing through the first stage of our long-term turnaround plan. On a macro level, we are moving aggressively to put issues behind us, while simultaneously positioning our company for future growth. We are also pleased to see a firming in the economy,” said chairman David Bell.
Interpublic’s operating companies include McCann-Erickson WorldGroup, Initiative Media and Lowe & Partners Worldwide.
Grey Global There was more positive sentiment from Grey Global Group which yesterday announced pre-tax profits of $12.5 million for the third quarter, an increase of 108.5% year on year. Revenue rose 11.7% to $324.5 million.
The advertising firm, whose portfolio includes Grey Worldwide and MediaCom, said that stability and selected signs of growth appear to characterise the North American market but improvement is less marked in Europe, particularly in Northern Europe, where economic weakness remains.
