Interpublic Group of Companies (IPG), a New York-based advertising holding company, announced its financial results for the second quarter. Despite a decline in revenue, IPG managed to increase its profit compared to the previous year.
Financial Highlights
- Profit: IPG reported a profit of $265.5 million, equivalent to 68 cents per share. This is an improvement from $230 million, or 58 cents per share, in the same quarter last year.
- Adjusted Earnings: After accounting for certain one-time expenses like restructuring costs, IPG’s adjusted per-share earnings stood at 74 cents, up from 63 cents per share a year ago.
- Revenue: IPG’s revenue dropped by 2.5% to reach $2.67 billion. However, this figure surpassed analysts’ expectations, who predicted revenue of $2.39 billion.
- Organic Net Revenue: Excluding the effects of foreign exchange, acquisitions, and disposals, organic net revenue declined by 1.7%.
Impact of Tech Sector on Results
IPG’s Chief Executive, Philippe Krakowsky, stated that the tech sector had a negative impact on the company’s growth during the quarter. However, this was partially offset by growth from media and healthcare clients.