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SEC Filings

8-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 10/24/2017
Entire Document
 



Operating Results

Revenue
Revenue of $1.90 billion in the third quarter of 2017 decreased 1.0% compared with the same period in 2016. During the quarter, the effect of foreign currency translation was positive 0.4%, the impact of net divestitures was negative 1.9%, and the resulting organic revenue increase was 0.5%. Excluding the decrease in organic pass-through revenue in the third quarter of 2017, the organic revenue increase would have been 1.5%.

Revenue of $5.54 billion in the first nine months of 2017 decreased 0.7% compared with the same period in 2016. During the first nine months of 2017, the effect of foreign currency translation was negative 0.5%, the impact of net divestitures was negative 1.3%, and the resulting organic revenue increase was 1.1%. Excluding the decrease in organic pass-through revenue in the first nine months of 2017, the organic revenue increase would have been 1.6%.

Operating Expenses
During the third quarter of 2017, total operating expenses decreased 1.8% compared with revenue decrease of 1.0% from a year ago. For the first nine months of 2017, total operating expenses decreased 0.8% compared with a decrease in revenue of 0.7% from a year ago.

During the third quarter of 2017, salaries and related expenses remained constant at $1.23 billion, compared to the same period in 2016. During the first nine months of 2017, salaries and related expenses were $3.74 billion, an increase of 0.4% compared to the same period in 2016.

Staff cost ratio, which is total salaries and related expenses as a percentage of total revenue, was 64.5% in the third quarter of 2017 compared to 63.9% a year ago, and was 67.5% in the first nine months of 2017 compared to 66.8% in the same period in 2016.

During the third quarter of 2017, office and general expenses were $455.9 million, a decrease of 6.2% compared to the same period in 2016. During the first nine months of 2017, office and general expenses were $1.34 billion, a decrease of 4.0% compared to the same period in 2016.

Office and general expenses decreased to 24.0% of total revenue in the third quarter of 2017 compared to 25.3% a year ago, and also decreased to 24.3% in the first nine months of 2017 compared to 25.1% a year ago.

Non-Operating Results and Tax
Other expense of $9.9 million in the third quarter of 2017 and $24.5 million in the first nine months of 2017 is primarily related to net losses on sales of businesses and the classification of certain assets and liabilities as held for sale.

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