Interpublic Gives Credit Where Credit's Less Due, Cites Debt Reduction For Q3 Results
Interpublic reported a relatively tepid growth of 1.8% during the third quarter of 2013, citing the performance of its financial management, rather than the underlying performance of its advertising services units.
“Management credits recent actions, including debt redemptions, for company's strong capital structure,” Interpublic called out in its third-quarter earnings release, as the basis for its third-quarter gains.
On an organic basis, Interpublic said total revenues rose 2.8% to $1.7 billion, including a 3.7% organic increase in the U.S., which outpaced a 1.6% expansion internationally. That's actually a greater rate of expansion than Interpublic has been pacing year-to-date. The parent company of agency units such as Mediabrands, McCann Erickson and Draftfcb had organic growth of 2.4% during the first nine months of the year.“The transformation of our balance sheet to one that is both simpler and more economical has put us in strong financial position,” CEO Michael Roth explained in the earnings statement.