Ad firm Interpublic beats quarterly estimates on resilient client spending
The results are the latest sign that ad spending is holding firm in an uncertain economy, after French ad giant Publicis (PUBP.PA), opens new tab and Omnicom (OMC.N), opens new tab also reported upbeat earnings. Increasing use of AI for creating ads has sparked worries about the industry that has long been the creative voice for brands.
Interpublic benefited in the April-June quarter from strong spending from its media and healthcare-focused businesses, as well as growth in its sports marketing and public relations units, CEO Philippe Krakowsky said.
The company, which last year signed a $13.25 billion merger with Omnicom to create the world's largest ad agency and better navigate the changing industry landscape, also said it expects the deal to close in the second half of the year.
Interpublic's media services are managed through IPG Mediabrands, which includes brands such as Initiative and Mediahub. Its healthcare marketing is managed under the unified IPG Health network.
The company reported second-quarter revenue of $2.54 billion, compared with analysts' average estimate of $2.17 billion, according to data compiled by LSEG.
Its adjusted profit per share of 75 cents also beat the estimate of 56 cents.
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