Interpublic 1Q loss widens on higher costs
Ad agency Interpublic's 1Q loss widens as higher costs offset 2 percent increase in revenue
NEW YORK (AP) -- Interpublic Group of Cos., which owns advertising and marketing agencies, said Friday its first-quarter loss widened as higher expenses offset a 2 percent increase in revenue.
Interpublic said the quarter's results were "solid" and should help it meet its financial targets for the year.
Shares rose 48 cents, or 3.7 percent, to $13.40 in morning trading.
After the payment of preferred dividends and excluding a minority investor's stake, the New York-based company posted a loss of $59.2 million, or 14 cents per share, compared with a loss of $45.9 million, or 10 cents per share, in the same quarter a year ago.
Revenue rose 2 percent, to $1.54 billion from $1.51 billion. International revenue rose 3.4 percent, while U.S. revenue rose 1.7 percent.
Analysts, on average, expected a loss of 13 cents per share on $1.53 billion in revenue, according to FactSet
Salaries and related expenses increased 2 percent to $1.13 billion, while office and general expenses rose 3 percent to $453.3 million.
