Interpublic revenue falls as loss narrows | VailDaily.com
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Interpublic revenue falls as loss narrows

CHICAGO – Client defections and divestitures dragged down third-quarter revenue at The Interpublic Group of Companies Inc., but the advertising conglomerate still managed to sharply narrow its losses.New York-based Interpublic Wednesday said it lost $101.5 million, or 24 cents a share, compared with a restated loss of $501.5 million, or $1.21 a share, in the third quarter a year-ago.Revenue fell to $1.44 billion from $1.52 billion.Divestitures accounted for 3.3 percent of the revenue decline.The company linked the drop in its revenue excluding divestitures to client losses and deferrals of revenue into the fourth quarter due to new revenue-recognition policies.Chief Executive Michael Roth said the company expects a modest decline in revenue excluding divestitures for the full year. Client losses will continue to affect results over the next few quarters.Roth noted that Interpublic has had to shell out a lot of extra cash for professional fees this year, partly to bolster accounting controls.However, these commitments should slow down “substantially in 2006 and then again in 2007,” he said.Shares of Interpublic fell 44 cents, or 4.2 percent, to close at $10.03 Wednesday on the New York Stock Exchange.Vail, Colorado


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