Interpublic Group, the world’s second largest advertising conglomerate reported fall in global revenues of $1.4 billion (£1.54bn; £0.96bn) – down 15% year-on-year.
Lower spending by clients and “carryover effects” of merger-related client losses were exacerbated by the group’s “disproportionate exposure” to the domestic American ad sector, compared to its rivals.
IPG also reported net income of $66.7m for the quarter versus a loss of $28.7m for the same period in 2001.
Chief executive officer John Dooner played down the slide in revenues, insisting that the group is on course to deliver “double digit” earnings per share this fiscal. EPS for the first quarter were $0.18 versus a net loss of $0.08 in last year’s comparable quarter.