Q2 Fiscals: Grey Gains, Interpublic Falters

13 August 2003

Interpublic Group and Grey Global Group, respectively numbers two and seven in the world agency rankings, on Tuesday reported contrasting fortunes in the year’s second quarter.

Grey Global
In the three months to June 30, Grey’s revenues rose ten percent year-on-year to $320 million (€285.1m; £200.39m) while net income reached $4.7m, bringing aggregated H1 income to $9.8m – respective increases of nearly 180% and 65% compared with the first half of 2002.

Much of this is attributed to the weakness of the US dollar and its beneficial effect on income from Europe. Excluding exchange rate fluctuations, overseas revenues remained relatively flat during H1, while North American revenues rose 3%.

The financial climate at IPG was less temperate with a reported Q2 net loss of $135 million (€120.27m; £84.54m). The company also revealed it will take charges of up to $200m in respect of corporate restructuring – announced in May – triggering layoffs and the melding of offices.

The Q2 loss compares year-on-year with a profit of $109m. Revenue, however, was marginally up by 0.6% thanks to exchange rate fluctuations; after allowing for these, organic revenues actually declined by 3%. US revenue gained 1.7% (1.4% on an organic basis) while international revenue fell 0.7% (or 8.1% organically).

Data sourced from: Multiple origins; additional content by WARC staff