(Adds Q1 details, analysts' estimates)
April 21 Advertising company Interpublic Group
of Cos reported quarterly revenue that missed analysts'
estimates as a tough economic environment slowed international
The company said revenue in the first quarter from its
international markets, which accounted for about 37 percent of
its total revenue, fell 1.3 percent to $642.1 million.
Interpublic, whose agencies include MullenLowe Group, McCann
and FCB, reported organic revenue growth of 2.2 percent in its
Analysts on average had expected an international organic
growth rate of 4.7 percent, according to market research firm
However, the company's net income available to shareholders
jumped nearly four-fold to $21.5 million, or 5 cents per share,
in the quarter ended March 31, as total expenses fell 58.6
Analysts on average had expected the company to earn 3 cents
per share, according to Thomson Reuters I/B/E/S.
U.S. rival Omnicom Group Inc reported
slower-than-expected quarterly growth in North America, while
France's Publicis said it suffered less than expected
in the first quarter from losses on big U.S. media accounts.
Interpublic, whose clients include Mondelez International
Inc, Coca-Cola and Boeing Co, said that
foreign exchange rates hurt revenue by 1 percent in the first
The "big four" ad agencies in the world including
Interpublic received subpoenas from the U.S. Department of
Justice in December as part of an investigation into video
production practices in the industry.
Interpublic's net revenue in the latest quarter rose
marginally to $1.75 billion, missing analysts' estimate of $1.76
Up to Thursday close, Interpublic's stock had risen 8.2
percent in the last 12 months.
(Reporting by Amy Caren Daniel in Bengaluru; Editing by Maju