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8-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 10/30/2017
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respect to our major clients. And again, consumer goods is about 8% of our sectors. But, that said, they’re big clients, and they present good opportunities for us in the future. What’s interesting on the consumer-goods side - frankly, we saw a positive in the U.S. on consumer goods as a result of, particularly FCB winning a particular client. So that’s encouraging for us, although overall, consumer goods was down.
The other area, which is not too dissimilar, is parts of food & beverage. And we saw a negative impact in that. And, candidly, a good reason for the decline in the food & beverage reflects some client losses that we had in that sector. So that is weighing on us in terms of those particular sectors.
On the positive side, when you look at our strength in healthcare, healthcare is 22% of our business. Once again, we saw a very strong performance in healthcare across McCann, FCB, our key healthcare global agencies, and we’ve seen positive opportunities. I might add that we’ve also won some additional business from these clients, so healthcare continues to be a strong sector for us.
“Other” actually is a strong sector for us. It was last quarter as well, particularly government-side and some unique companies and some technology-side.
One that historically has been very strong for us was tech & telecom. And in this quarter, we saw a reduction in tech & telecom, but a good part of that is the impact of pass-throughs. Last year, we had two very big events in tech & telecom, which didn’t repeat. So that had a negative impact on tech & telecom.
And, frankly, the other reason that some of our sectors are down is, we are cycling through some large clients in the United States. Now, the good news is, we continue to be net new business slightly positive. Let’s call it equal for the full year. But we still have to cycle through a number of larger clients, particularly in the U.S., although SEAT was in Europe. That is hurting our organic growth. So I know we have new business coming onstream, which offsets the cycling through of these losses. And I don’t get to do this, but I’ll say it anyhow. Had we not had those losses, our organic growth would be on the top of the scale, in terms of organic growth.
So that’s another reason that I say, why I think the tone of the business is not reflected in the results that we’re seeing today. There’s a lot of new business activity, we see that. There aren’t a lot of big agency-of-record pitches that are out there, but certainly, on the media side, we’re seeing a number of pitches, and we’re faring well in those and hope to add some new ones - wins - to announce shortly. So I hope that gives you a sense of what’s happening out there.
Ms. Quadrani:
That’s very helpful. And just to be sure, I want to stay on the digital side, where you cited a little bit of weakness. Is that, you’re not seeing some of that business go in-house, you’re just sort of seeing a pullback in terms of -

Mr. Roth:
Well, look, there’s no question there’s a tendency to some clients to bring digital in-house. But the reality is, when we’re talking about our large projects - we said this in the last call - our digital businesses have become so embedded into the clients’ businesses, they’re very large projects. And, as we know, like any project business, when those businesses are challenged from a P&L point of view, the easiest place for them to cut on the cost side is to cut those projects. So, in particular on the digital side, these large projects - and I know you’re being kind, not asking why we didn’t do this in the second quarter - we had these projects on the shelf, and, frankly, we thought they would be coming to fruition within the third or fourth

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