Interpublic Group this week sounded more optimistic than it's been in quite a while, reporting a tiny increase in organic revenue.
IPG also reported a decrease in professional-services fees in the first half of the year, signaling that the third-largest holding company is making some progress in the battle to retain clients and sort out accounting problems, reports AdAge. "Interpublic is no longer looking in the rearview mirror at past financial statements," CFO Frank Mergenthaler is quoted as saying in reference to restatements of financial reports.
Although overall revenue decreased 2.7 percent during the first half of the year, organic-revenue growth was 0.5 percent, and operating expenses declined to $2.94 billion from $2.99 billion in the first half of 2005. In the second quarter, net income was $68.9 million, up from $9 million last year.
"Our CMG and McCann units are performing well, and we are confident the new directions we are taking with Draft FCB and Lowe will yield positive results," Chairman-CEO Michael Roth is quoted as saying.
