NEW YORK: Like a suddenly-cleared carburettor on a sputtering auto, Interpublic Group on Tuesday roared back into the agency fast lane at full power, with chairman/ceo Michael I Roth (pictured) reporting: "The second quarter saw Interpublic perform at the highest level in many years."
Here are IPG's summarized results for Q2 and H1 ...
*Second quarter 2007 revenue of $1.65 billion (€1.20bn; £816.75m), compared to $1.53bn the same period a year ago. First half 2007 revenue of $3.01bn, compared to $2.86 billion in 2006.
*Organic revenue increase of 6.6% compared to the second quarter of 2006, due to higher revenue from existing clients and net client wins. For the first half of 2007, organic revenue increase was 4.3% relative to 2006.
- Operating Results
*During the second quarter, operating expenses were $1.51bn in 2007, compared to $1.46bn last year. For the first half, operating expenses were $2.99bn this year, compared to $2.94bn in 2006.
*Operating income in the second quarter of 2007 was $145.6 million, compared to $76.9m in 2006. For the first half of 2007, operating income was $21.4m, compared to a loss of $82.7m in 2006.
*Operating margin was 8.8% and 0.7% for three and six months ended June 30, 2007 compared to 5.0% and (2.9%) for the three and six months ended June 30, 2006, respectively.
- Net Results
*Second quarter 2007 net income was $137.0m and net income applicable to common stockholders was $121.5m, or $0.27 per basic and $0.24 per diluted share, compared to net income of $65.7m and net income applicable to common stockholders of $44.2m, or $0.10 per basic and diluted share a year ago. The 2007 period includes a significant net reversal of tax reserves.
*Year-to-date 2007 net income was $11.1m and net loss applicable to common stockholders was $2.7m, or ($0.01) per basic and diluted share, compared to net loss of $104.5m and net loss applicable to common stockholders of $128.3m, or ($0.30) per basic and diluted share in 2006.
Comments Roth: "These results are encouraging and should serve to validate our belief that we have the company on the right track. Improved organic growth demonstrates that our focus on attracting and developing talent, as well as strategically realigning our capabilities, is paying dividends in the marketplace.
"The quarter is a testament to the real potential of our company. We continue to drive the organization toward achieving our 2008 goals, although recent client reversals and the accelerating pace of change in our industry represent additional challenges that we must overcome in order to achieve those targets."
To read the full IPG report click here
Data sourced from multiple origins; additional content by WARC staff