Interpublic revenue dips in Q3
October 31, 2012 | Jonathan Paul | Comments
Interpublic Group, which owns the McCann, DraftFCB and Lowe agency groups in Canada, announced its financial results for the third quarter of 2012, reporting a dip in revenue and net income due to caution on the part of clients and the impact of account losses.
The New York-based company took in $1.67 billion during the period, which constituted a decrease of 3.2% compared to the same time frame last year. It experienced a drop in organic revenue of 0.9%, which was made up of an organic revenue increase of 5.2% internationally and a decrease of 5.4% in the U.S.
The company’s net income for the period was similarly bleak, accounting for only $68.7 million compared to $208.1 million during the third quarter of 2011.
“This year has proven to be more challenging on the revenue front than anticipated, but we continue to manage the business effectively and will deliver increased full-year profitability relative to 2011,” said Michael I. Roth, chairman and CEO, Interpublic Group, in a statement.
“While the third quarter showed strength internationally and in emerging economies, as well as from our digital offerings across the portfolio, this was not enough to offset incremental client caution being felt across our industry, the effect of client losses from last year and the comparison to very strong growth in the third quarter of 2011.”
Client losses for Interpublic in 2011 included its Microsoft and SC Johnson accounts. The results released by the company on Friday stand starkly when compared to its promising financials in Q3 2011, which saw it experience growth of 8.7%, driven by 10% growth in the U.S.