Interpublic Group of Companies, Inc. (IPG) Friday reported a wider-than-expected loss for its first-quarter, reflecting higher expenses. Meanwhile, revenues increased and beat analysts' expectations.
The providers of advertising and marketing services posted a quarterly net loss of $59.2 million or $0.14 per share, wider than $45.9 million or $0.10 per share in the previous year.
On average, 17 analysts polled by Thomson Reuters expected the company to report a loss of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.
Seasonal operating loss was $42.4 million, compared to an operating loss of $39.4 million last year.
Quarterly revenue increased 2.4 percent to $1.54 billion, and came above analysts' estimate of $1.53 billion. In the U.S., revenues grew 1.7 percent to $894.4 million. International revenues were $648.6 million, up 3.4 percent from the preceding year.
Organic revenue growth was 2.3 percent, with an organic revenue increase of 4.9 percent internationally and 0.5 percent in the U.S.
Michael Roth, chairman and CEO of the company said, "Key drivers of performance included our strong operations in emerging economies, the quality digital offerings embedded across the group, our media and marketing services companies, as well as our substantial US operations."
Total operating expenses increased to $1.59 billion from $1.55 billion a year earlier. During the quarter, salaries and related expenses rose 2.5 percent, and office and general expenses advanced 2.7 percent from the preceding year.
IPG is currently trading at $13.41, up 3.79 percent on the NYSE.
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