NEW YORK: The Interpublic Group released its long-delayed financial results for 2004 and the first half of 2005 this morning, as well as restated figures for the past five years.
The post-2000 restatement reduced the holding company's retained earnings by more than $500 million.
The company reported 2004 revenues of $6.4 billion, a 3.7% increase over 2003. US revenue accounted for $3.5 billion of the total, a 1.4% increase from the previous year.
In the first half of 2005, IPG's revenue rose 1.5% from 2004, to $2.95 billion. Of that, US revenue was $1.67 billion, nearly equal to the first half of 2004.
Perhaps most notably, IPG managed to post a modest profit in the second quarter of 2005, as second quarter revenues rose 6.8% to $1.62 billion. In the same quarter of 2004, the company's net loss was $93 million.
For the entire first half of 2005 the company posted a $139 million net loss, better than the $182 million loss it registered in the first half of 2004.
IPG had previously disclosed that its review found some legal malfeasance at some of its units around the world. Today, the company said that its investigations into the incidents caused it to reduce retained earnings by more than $55 million. It said that most of the cases occurred outside the US.
"No current senior executives of Interpublic are involved," said IPG CEO Michael Roth.
The Constituent Management Group, the IPG division that includes its PR and other marketing services agencies, posted revenues of $936 million in 2004, down less than 1% from 2003.
In its filing, the company said, "The organic revenue decline was primarily driven by a decrease in the branding and sports marketing businesses, offset slightly by growth in our public relations business."
IPG's PR agencies include Weber Shandwick, MWW, Devries, and GolinHarris.