Interpublic has announced third quarter revenue of $1.44 billion, a drop of 2.6% year on year organically and 3.3% due to net business dispositions.
Resulting from these figures, revenue was down by 5.1% compared to the same period a year ago.
Revenue for the first nine months of 2005 for the advertising group reached $4.39 billion, a decline of 0.7% and flat organically compared to the same time in 2004.
Interpublic reported an operating loss of $96.8 million in Q3 2005, with net loses of $101.5 million, resulting in a year to date operating loss of $136.4 million, compared to a loss of $405 million in the same period in 2004.
Commenting on the results, Michael Roth, chairman and chief executive officer of Interpublic said: “Organic revenue performance for the first nine months of 2005 was flat and we expect a modest decline for the full year. We have taken steps to improve our growth prospects by making management changes and upgrades at a number of key operating units.”
He added: “We continue to see the very high level of professional fees that we have been incurring throughout this year. These are a necessary investment to remediate the company’s financial control environment and build effective shared services solutions.”
Looking towards the future, Roth said that improving organic growth and margins were Interpublic’s main priorities in the New Year.
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