IPG shares fall by 25 per cent as it delays Q2 results

Quoted marketing groups took another battering this week as Interpublic Group saw its shares fall nearly 25 per cent following news it would have to delay its second-quarter results.

The group, which owns Weber Shandwick, sparked fears over its accounting practices when it said it needed to postpone the results, due out earlier this week, at the request of its auditor.

IPG's announcement was followed by a slightly more upbeat report from Omnicom, which posted its second quarter results, revealing a ten per cent revenue hike despite questions last month over its accounting practice.

In response to Wall Street Journal allegations, which sent its shares plummeting 30 per cent in mid-July, Omnicom filed a lengthy investor report and has changed auditors from Arthur Andersen to KPMG.

But Omnicom's results show the good news failed to extend to its PR interests - including Gavin Anderson, Ketchum, Fleishman-Hillard and Countrywide Porter Novelli - whose revenues fell by almost 11 per cent.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Would you like to post a comment?

Please Sign in or register.