Interpublic Group, holding company for McCann Erickson, Universal McCann, Initiative and Lowe, says its organic revenue growth of 6.2% last year is “gratifying” but warns that it has begun to see the “negative effect” of the economic downturn.
The Group posted total revenue of $6.9bn (£4.9bn) in 2008, up from $6.5bn (£4.6bn) in 2007 which helped push net income up $133.3m (£94.1m) to $265.2m (£187m) for the full year.
However, revenues in the last three months of the year dipped 4.1% to $1.9bn (£1.3bn) with international revenues, which includes UK agencies, sliding 6.3%.
Michael I. Roth (pictured), chairman and CEO of Interpublic, says although its 2008 were “very strong” the fourth quarter and early part of 2009 has been impacted by the global economic downturn but that the Group’s long-standing conservative approach” to financial and balance sheet management” will help it through these “volatile times”.
“Given that it’s unclear how pronounced or lasting the downturn will be, we must continue to remain focused on the basics: delivering value to our clients and ensuring that we continue to manage to our margins,” he says.
Interpublic Group’s full year results compare favourably with those of rival Publicis Groupe which reported a slight 1% rise in group revenues and a fall in net income to €447m (£399m) from €452m (£402m) in 2007.