Speaking to investors at the Mid-Year Media Review, Interpublic's chief financial officer, Sean Orr, said the percentage revenue drop in the second quarter "is going to be a high single-digit number."
However, he noted this will be an improvement over the first quarter, when Interpublic reported a 15.2% revenue decrease.
Sticking by earnings growth
Mr. Orr would not give
That appears to be a difficult target; Mr. Orr estimated that given revenue performance year-to-date, Interpublic would have to produce a second-half revenue increase in the high single- or double-digit percentages to deliver flat revenue in 2002. Year-over-year comparisons will get progressively easier in the third and fourth quarters, but client spending trends are still too tough to call, he said.
"The revenue environment has been difficult, and how good is good on the second half of the year is still in question," Mr. Orr said.
Advertisers are showing guarded optimism about a recovery and may increase spending in the second half, but "how much depends on how brave our clients are," he said.