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Strong second-quarter financial results for giant agency holding companies Omnicom Group and Interpublic Group of Cos. bode well for the U.S. ad industry.

"No question that the revival in U.S. advertising is afoot," said Alan Gottesman, an analyst with PaineWebber, New York.

The Omnicom and Interpublic results were the first wave of second-quarter reports by agency holding companies. Reports are due soon from Saatchi & Saatchi, WPP Group and Foote, Cone & Belding Communications.

"Both had results that were in line with expectations, but Interpublic earnings were wrung out of a lower revenue increase than Omnicom enjoyed," said Dean Witter Reynolds analyst James Dougherty.

In the quarter, Omnicom's worldwide revenue was $425.2 million, up 11% from the same period last year; Interpublic revenue rose 2.8% to $498 million.

Omnicom, parent to BBDO Worldwide, DDB Needham Worldwide and TBWA, announced second-quarter net income of $33.5 million, up 23%.

Interpublic, parent to McCann-Erickson Worldwide, Lowe Group and the newly merged Ammirati & Puris/Lintas, reported second-quarter net income of $54.1 million, an increase of 10.4%.

Both holding companies were losers in IBM Corp.'s massive $500 million global consolidation in the second quarter, but that account loss hasn't been fully registered.

Dean Witter's Mr. Dougherty predicted Omnicom will post an 11.8% increase in third-quarter revenue. Interpublic, whose results will include Ammirati operations for the first time, will be up about 10%, he said.

For the year, Mr. Dougherty predicted Omnicom revenue will rise 9% to $1.65 billion. Interpublic should gain 7.3% to $1.93 billion.

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