GREY, BCOM3 REPORT QUARTERLY EARNINGS

Overseas Ad Markets, Accouting Changes Impact Income

By Published on .

NEW YORK (AdAge.com) -- Earnings reports from ad agency holding companies continued today as Grey Global Group and Bcom3 Group posted their second-quarter results.

Grey Global reported a 31.2% drop in net income during the second quarter to $1.67 million, from $2.43 million in 2001. The drop was partly due to weakness in Grey's European operations, where revenue declined 15% during the second quarter, and to lower returns from the company's investments.

International revenue -- 53.4% of Grey's total -- was down 13.7% for the

Related Stories:
INTERPUBLIC TO RESTATE FIVE YEARS OF EARNINGS
Discloses $68.5 Million in Improperly Expensed Charges
PUBLICIS REPORTS REVENUE FLAT FOR SECOND QUARTER
Cites Continued Weakness in U.S., European Ad Markets
OMNICOM EARNINGS UP 9% FOR QUARTER
New Auditors Approve Seneca Transaction; Stock Rebounds
quarter and domestic revenue was up 0.3% over the same period in 2001. Total second-quarter revenue was down 7.7% to $290.1 million, from $314.3 million a year ago.

Meanwhile, Bcom3, awaiting to complete its acquisition by Publicis Groupe, showed improved results for the second quarter. The company posted second-quarter net income of $33.7 million, up from $4.4 million in 2001; factoring out accounting changes for 2001, net income was up 75.5%, from $19.2 million in 2001.

Revenues increased 1.4% to $486.7 million, with domestic revenues up 2.6% and international revenues up only 0.1%. But after factoring out new accounting regulations, total revenues would have risen only 0.1% and domestic revenue 0.4% while international revenue would have dropped 0.4%.

In this article:
Most Popular