Interpublic group first quarter results disappoint analysts

NEW YORK: Advertising company Interpublic group of companies, the world's second-largest owner of advertising agencies has reported a disappointing results for the FY2003. The group also named Christopher Coughlin (ex executive VP and CFO at Pharmacia Corporation) to assume charge of the newly created position of a chief operating officer.

While announcing its results on 7 May, Interpublic reported a first-quarter net loss of $8.6 million, or 2 cents a share. That compared with a year-ago profit of $59.8 million, or 16 cents. The first quarter revenues rose nearly 1 per cent to $1.43 billion as foreign exchange fluctuations masked the weakness in the ad market abroad and project-related businesses such as public relations, says an adage report.


The company, which has reshuffled its management as it contends with earnings restatements and a probe by the Securities and Exchange Commission. The holding company said it swung to a quarterly net loss hurt by higher costs, including severance, as it tries to turn itself around.

Group chief executive and chairman David Bell was reported as saying that the results were 'disappointing and unacceptable.' He added that the efforts to increase revenues, including cost controlling measures, would begin to bear fruit in the second half of the year.

Interpublic said its new business wins in the quarter totaled $1.3 billion, including clients such as Merck & Co. and AT&T Corp. , which encouraged some analysts.

The company said it will accelerate its cost-cutting in the second quarter and believes the second-half of the year and first-half of 2004 will form a base for the future. Interpublic said it will give further details on its plans in August.

Latest Reads
Amagi partners with BARC India to offer monitoring of geo-targeted TV ad-campaigns

Amagi Media Labs has entered into a partnership agreement with India’s apex television viewership monitoring body BARC India to help advertisers monitor geo-targeted ad-campaigns of brands across TV channels.

MAM Media and Advertising AD Agencies
iProspect conceptualises unique digital video for ICICI two-wheeler insurance

iProspect India has conceptualized and executed a unique digital video for ICICI Lombard General Insurance in their latest campaign on two-wheeler insurance.

MAM Media and Advertising AD Agencies
eBay engages consumer with live game on FB

MUMBAI: Festive season is a busy time for Indian brands, especially the e-commerce players given the shopping spree the nation witnessed around the time. Thus it becomes important to brainstorm on new and unique ways to get the consumer’s attention; something different from the unbelievable...

MAM Media and Advertising Ad Campaigns
Culture Machine & Quaker Oats aim to feed kids

As the festive mood gathers spirit in the country, Culture Machine’s digital channel Being Indian, in collaboration with Quaker Oats, have released a new campaign. Titled "Ek Muthi Sonu ke Naam", the video urges people to pause and spare a thought to the millions of children who go hungry.

MAM Media and Advertising Ad Campaigns
BTVi unveils new brand positioning

BTVi has unveiled its new positioning, #OpinionsThatCount, aimed at impacting the opinions of the influencers. With this, BTVi will be the voice and choice of the influential. An integrated campaign will be launched primarily catering to influencers, key decision makers and opinion makers.

MAM Media and Advertising People
Cornitos unveils 'Crispy' mascot

Cornitos, the flagship brand of Greendots Health food Ltd, rolled out its new brand campaign announcing the launch of its mascot. With its inception in 2009, it is for the first time that the brand has given a face to its much-loved Nachos category.

MAM Media and Advertising Ad Campaigns
Barbie's 'Power Of Play': Mattel, BBDO remind parents

MUMBAI: Mattel Asia has launched a new video for its Barbie® brand as part of its broader initiative to empower girls. Mattel Asia, takes on the widely held belief in Asia that imaginative play is not important to a child’s development, with the release of, “The Power of Play with Barbie,” a part...

MAM Media and Advertising Ad Campaigns
Zee Mundo hires Steinbranding

MUMBAI: Steinbranding, the international design agency with headquarters in Buenos Aires, responsible for the image of more than 50 channels worldwide, was chosen by the major Indian media group, Zee Entertainment Enterprises to create the brand, naming and on-air & off-air branding for Zee...

MAM Marketing Brands
Exquisite partners with Warner Bros. consumer products

Exquisite, an innovative and experienced player in the EMEA market, has teamed up with Warner Bros. Consumer Products EMEA (WBCP EMEA), on behalf of DC Entertainment, to create the first retail loyalty programmes featuring DC Super Heroes.

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories