NEW YORK: The Interpublic Group posted a loss in the fourth quarter and saw revenue decline in the full year of 2005.But the troubled holding company cited several of its PR agencies as bright spots.
Propelled by sharp losses internationally, fourth quarter revenue for the company fell to $1.9 billion, down 3.6% from 2004. For all of 2005, IPG's revenues were $6.27 billion, down 1.8% from the previous year.
In a conference call, IPG CFO Frank Mergenthaler cited Mullen and Carmichael Lynch Spong for strong performance in the fourth quarter. He also said that the Constituent Management Group (CMG), the IPG division containing its PR agencies, displayed "solid performance across the board" in the quarter.
Mergenthaler also said that Weber Shandwick and GolinHarris posted "solid increases for the year," and that the UK market showed "solid growth in public relations."
The performance of PR agencies stood in contrast to several of IPG's major ad agencies, which led the company's declining numbers.
In the conference call, IPG management said that it is unlikely that the holding company will be fully Sarbanes-Oxley compliant by the end of 2006. IPG continues to struggle with extensive internal accounting difficulties.
IPG's PR agencies include Weber Shandwick, GolinHarris, and MWW.