CHIEF ACCOUNTING OFFICER FIRING COST IPG $2.5 MILLION
SEC Document Lays Out Nick Cyprus' Contract Terms
INSIDE INTERPUBLIC'S ANNUAL REPORT
An Ad Age Detailed Analysis of the Just-Filed SEC Document
TOP ACCOUNTING EXEC LEAVES INTERPUBLIC
Churn in Financial Leadership Continues With Nick Cyprus Departure
DAVID BELL RETIRES FROM CO-CHAIRMAN POST AT INTERPUBLIC
Eligible to Earn $750,000 Annually as Consultant to Company
INTERPUBLIC'S DAVID BELL AND JOHN DOONER TO BE OFF BOARD
SEC Informed They Will Not Be Renominated to Seats
IPG STOCK HITS TWO-YEAR LOW
Plans to Sell $575 Million in New Stock
IPG OFFERS DETAILS BEHIND $550 MILLION RESTATEMENT
'Material Weakness' in Agency Oversight Cited
IPG EARNINGS RESTATEMENT DROPS A HALF-BILLION DOLLARS
Filing Cites Seven Instances of Employee Misconduct
IPG TO RESTATE EARNINGS AGAIN
Reports 'Possible Employee Misconduct' Found
INTERPUBLIC GROUP NAMES NEW CFO
Frank Mergenthaler Was Formerly With Columbia House
SEC WIDENS INVESTIGATION OF IPG
CFO of Embattled Holding Company to Leave
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$182 million loss
Overall revenue for the No. 3 ad-agency holding company was basically flat at $1.33 billion, but organic growth, an important metric in the ad business, grew 4.8% during the first quarter of 2006. Net loss was $182 million, up from $151 million during the same period last year.
"Cost control will be a strong priority because that's an indication of whether our turnaround is taking hold," said Chief Financial Officer Frank Mergenthaler.
"We're pleased with organic revenue increases, but we need to bring costs in line," said Interpublic Chairman-CEO Michael Roth in a call with analysts.
Interpublic has said it wants to reach double-digit operating margins as well as competitive revenue growth by 2008. To that end, Mr. Mergenthaler said he is pushing CFOs at individual operating units to control costs.
Mr. Roth said that McCann Worldgroup and FCB turned in strong performances on increased client spending, while Deutsch saw a decline because of client losses from last year. Interpublic's troubled media-buying and planning operations also posted revenue declines because of client losses, though Mr. Roth said he was cheered by Initiative's recent win of CBS's media business.
Draft, FCB issue
Echoing previous public statements, Mr. Roth said Interpublic continues to mull an alignment or combination of marketing services agency Draft and traditional ad agency network FCB.
He didn't elaborate on the likely shape of such a move, but Mr. Roth did reveal more insight into the motivations behind it. He said the discussions were driven more by changing client needs rather than by eliminating costs or improving weak assets by lashing them to strong ones, as Interpublic has done in past agency mergers.
He said part of the ongoing analysis involves looking at client conflict issues, noting it wouldn't make sense to create an organization that creates loss because of conflict.