• by Paul Gough , March 10, 2004

Months into its turnaround, Interpublic Group of Cos. reported improved results, even if organic revenue didn't push into positive territory in the fourth quarter of 2003. The results come despite the Interpublic's loss of Universal McCann's flagship Coca-Cola Co. media buying business, supporting the media shop's contention that the high-profile account wasn't the cash cow that may believe it to be.

Organic revenue, which doesn't include the impact of acquisitions or the selling of assets, declined 1.3 percent in the fourth quarter compared to the same period in 2002, with U.S. revenues falling from $891.5 million in 2002 to $861 million in the fourth quarter of 2002. Interpublic owns Initiative Media and Universal McCann but those units' results aren't broken out any further in the data released Tuesday morning.

Total revenues worldwide rose 5.7 percent to $1.6 billion in the fourth quarter compared to the same period a year earlier.

Interpublic reported a net loss of $102.5 million, or 26 cents a share, in the fourth quarter compared to a gain of $20.3 million, or 3 cents a share, a year earlier. The company took a $40.6 million charge in the quarter for restructuring charges.

Also on Tuesday, Aegis Group PLC reported record revenues and profits. Aegis, which owns Carat, the sixth largest media shop in the United States, is the closest thing to a pure play media services holding company, though it also owns extensive marketing and media research operations.

Aegis' organic revenues rose 4.7 percent, with total revenues rising from $1 billion in the fourth quarter of 2002 to $1.18 billion a year later. Aegis Group Chief Executive Douglas Flynn said Carat USA showed "solid growth" although it was more from existing clients than new business. Annualized net new billings were $276 million in 2003 down from $730 million a year ago. New accounts included Gillette, Entertainment Arts, Lucent and Pharmacia.

"2003 wasn't a stellar year for us," said Flynn. "We pretty much came back to punching our weight in the marketplace, which is a salutary lesson if you're used to punching well above your weight."