Interpublic Group reports first-quarter net loss
The Interpublic Group of Companies (IPG) reported a first-quarter net loss of $53.2 million on April 28. Although the holding company's revenue grew 9.3% organically to $1.47 billion in the quarter, compared with the prior year, operating expenses rose 8.9% to $1.52 billion in the period.
IPG's Integrated Agency Network segment, which includes domestic agencies and service providers such as McCann Worldgroup, Draftfcb, Lowe & Partners and Mediabrands Worldwide, saw a 9.7% year-over-year organic increase in revenue to $1.24 billion. Marketing services accounted for 42% of the company's first-quarter revenue.
Organic growth represents change in revenue without measuring the impact of acquisitions or disposals.
“We are pleased to have started the year with another quarter of strong revenue growth and operating margin improvement,” said Michael Roth, chairman and CEO of IPG. “All of our major agencies contributed to this performance, led by our operations in the US and emerging markets.”
Roth said the company expects to see the 4% to 5% organic revenue growth in 2011 that he had targeted during IPG's full-year 2010 earnings call. IPG reported $6.5 billion in revenue for full-year 2010, a 7% organic growth increase from the prior year.