Interpublic’s Second-Quarter Profit Falls 18% on Expenses, But Revenue Up
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Interpublic Group of Cos. reported lower second-quarter profit than its peers Omnicom Group and Publicis Groupe, posting on Friday an 18% drop in net income to $80 million.
The drop was attributed to expenses while revenue from recent new business wins were not reflected in the quarter. Interpublic said its expenses included investments in talent (headcount was up 2.7% in the quarter), particularly to ramp up to staff new business wins such as Cadillac, and acquisitions that closed, including three in India.
“We incurred some expense in Q2 ahead of related revenue on some of our recent wins,” said Interpublic Chairman-CEO Michael Roth, on a conference call with analysts. “But these are significant new assignments, accretive to our results, and that investment will pay off going forward.”
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