IPG posts operating loss but PR shows increase

NEW YORK: The Interpublic Group posted an operating loss of $124 million in the first quarter of 2007, but that was still a 22% improvement over their $160 million loss in the first quarter of last year. IPG, the third-largest holding company, posted first quarter revenue of $1.36 billion, up 2.4% from $1.33 billion in the first quarter of 2006. In a conference call, IPG executives cited PR as a strong performing sector of the company’s business, a steady trend for the holding company even as its finances have been relatively rocky in recent years. Constituency Management Group (CMG), the IPG division that houses its large PR agencies, reported $228 million in first quarter revenue, marking a 4.4% increase from last year. Frank Mergenthaler, IPG’s CFO, cited “double digit organic revenue increases in PR, led by Weber Shandwick and Golin Harris.” The US represented 59% of IPG’s revenue in the first quarter, up from 58% in Q1 of 2006. The US region also reported 4.2% organic revenue growth comparatively. Mergenthaler attributed the growth partly to “strong performance across the board by our PR businesses.” IPG’s PR agencies include Weber Shandwick, Golin Harris, MWW, and Devries.

NEW YORK: The Interpublic Group posted an operating loss of $124 million in the first quarter of 2007, but that was still a 22% improvement over their $160 million loss in the first quarter of last year. IPG, the third-largest holding company, posted first quarter revenue of $1.36 billion, up 2.4% from $1.33 billion in the first quarter of 2006. In a conference call, IPG executives cited PR as a strong performing sector of the company’s business, a steady trend for the holding company even as its finances have been relatively rocky in recent years. Constituency Management Group (CMG), the IPG division that houses its large PR agencies, reported $228 million in first quarter revenue, marking a 4.4% increase from last year. Frank Mergenthaler, IPG’s CFO, cited “double digit organic revenue increases in PR, led by Weber Shandwick and Golin Harris.” The US represented 59% of IPG’s revenue in the first quarter, up from 58% in Q1 of 2006. The US region also reported 4.2% organic revenue growth comparatively. Mergenthaler attributed the growth partly to “strong performance across the board by our PR businesses.” IPG’s PR agencies include Weber Shandwick, Golin Harris, MWW, and Devries.

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