Interpublic set to focus on cost-cutting following lower than expected profit
Interpublic, the parent company of advertising agencies such as McCann Erickson and Draftfcb, has said it would focus on cutting costs following a lower-than-expected second-quarter profit.
Interpublic blamed the reduced profit on steep declines in ad spending in Europe, while revenue from the United States rose 4.8 per cent, accounting for about 57 per cent of its $1.76bn total revenue.
Chief financial officer Frank Mergenthaler told Reuters in a post-earnings conference call: "We have done extensive work to lower our expense base in Europe and will continue to manage expenses to the revenue reality we face.”
Interpublic hired 200 staff in the last quarter, and it is believe that this led to an almost three per cent rise in operating expenses.
The announcement comes in the same week as Omnicom Group and Publicis revealed their results.
Content created with:
Interpublic Group
Find out more