Q3 income drops at IPG

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IPG President and CEO Michael Roth.
IPG President and CEO Michael Roth.

Sales of businesses resulted in $139 of income, down 11.7% from the same quarter last year

Interpublic Group's income before income taxes was $139 million for the third quarter of 2015, down 11.7% from $157.5 million in 2014, thanks to a $38 million loss on the sales of businesses.

Excluding the losses from the sales of non-strategic businesses, income available to IPG’s common stockholders was $110.2 million, up 18.6% when compared with $89.7 million during the same period in 2014.

But including the non-operating, pre-tax loss of $38 million, which was mostly non-cash, that income figure dropped to $74.9 million.

IPG's growth figures were strong, however. Revenue for the third quarter of 2015 was $1.87 billion, up 1.6% from $1.84 billion after the third quarter of 2014. Organic revenue increased 7.1% compared with the same period in 2014.

Aggregated revenue for the first nine months of the year was $5.42 billion, up 8.3% when compared with $5.33 billion in the first nine months of 2014.

Operating income in the third quarter was $191.9 million, which is up 12% versus the same period in 2014, when it was $171.3 million. Over that same period, operating margin rose from 10.3% to 9.3%.

Following today's results, Michael Roth, IPG's chief executive, said he expected the company to beat its 5% organic growth target for the year.

The stock market welcomed the news of IPG's figures, with shares up 2.7% on the New York Stock Exchange.

IPG owns advertising networks including McCann, FCB and R/GA. The sales in the group's accounts are understood to refer to satellite offices across various IPG's global networks that were not profitable for the holding company.

This article first appeared on campaignlive.co.uk.


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