IPG
    Print Page  Close Window

SEC Filings

8-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 07/25/2017
Entire Document
 


Operating Results

Revenue
Revenue of $1.88 billion in the second quarter of 2017 decreased 1.7% compared with the same period in 2016. During the quarter, the effect of foreign currency translation was negative 1.1%, the impact of net divestitures was negative 1.0%, and the resulting organic revenue increase was 0.4%. Excluding the decrease in organic pass-through revenue in the second quarter of 2017, the organic revenue increase would have been 1.0%.

Revenue of $3.64 billion in the first half of 2017 decreased 0.6% compared with the first half of 2016. During the first half of 2017, the effect of foreign currency translation was negative 1.0%, the impact of net divestitures was negative 1.1%, and the resulting organic revenue increase was 1.5%. Excluding the decrease in organic pass-through revenue in the first half of 2017, the organic revenue increase would have been 1.7%.

Operating Expenses
Total operating expenses decreased 0.9% in the second quarter of 2017 from a year ago, compared with revenue decrease of 1.7%, and decreased 0.3% in the first half of 2017 from a year ago, compared with revenue decrease of 0.6%.

During the second quarter of 2017, salaries and related expenses were $1.24 billion, an increase of 0.8% compared to the same period in 2016. During the first half of 2017, salaries and related expenses were $2.51 billion, an increase of 0.7% compared to the same period in 2016.

Staff cost ratio, which is total salaries and related expenses as a percentage of total revenue, was 65.7% in the second quarter of 2017 compared to 64.1% in the same period in 2016, and was 69.1% in the first half of 2017 compared to 68.3% in the same period in 2016.

During the second quarter of 2017, office and general expenses were $439.1 million, a decrease of 5.4% compared to the same period in 2016. During the first half of 2017, office and general expenses were $887.9 million, a decrease of 2.9% compared to the same period in 2016.

Office and general expenses were 23.3% of total revenue in the second quarter of 2017 compared to with 24.2% a year ago, and were 24.4% in the first half of 2017 compared to 25.0% in the same period in 2016.

Non-Operating Results and Tax
Net interest expense of $21.0 million increased by $2.1 million in the second quarter of 2017 compared to the same period in 2016. For the first half of 2017, net interest expense of $36.7 million increased by $1.0 million compared to the same period in 2016.


Interpublic Group 909 Third Avenue New York, NY 10022 212-704-1200 tel 212-704-1201 fax