New York-based Fortune 500 advertising and marketing services company The Interpublic Group has reported revenues of $6.96 billion for full year 2008, up 6.2% compared with $6.55 billion in 2007.
The effect of foreign currency translation was positive 1.1%, the impact of net acquisitions was positive 1.3% and the resulting organic increase in revenue was 3.8%, for 2008.
For the full year 2008, the company’s net income stood at $295 million, with net income applicable to common stockholders of $265.2 million. This compares to a net income of $167.6 million and net income applicable to common stockholders of $131.3 million for the full year 2007.
Reported revenue of $1.90 billion in the fourth quarter of 2008 was down 4.1% compared with $1.98 billion for the same period in 2007. During the quarter, the effect of foreign currency translation was negative 4.2%, the impact of net acquisitions was positive 2.4% and the resulting organic decrease in revenue was 2.2%.
Net results in the fourth quarter of 2008 and 2007 include the impact of the reversal of net tax valuation allowances of $38.8 million and $21 million, respectively, which are the direct result of improved profitability in certain markets outside of the U.S.
At December 31, 2008, cash, cash equivalents and marketable securities totaled $2.27 billion, compared to $2.04 billion at the end of 2007 and $1.71 billion at the end of the third quarter of this year. Total debt of $2.12 billion as of December 31, 2008 decreased from $2.35 billion as of December 31, 2007, primarily due to the repurchase of approximately $191.0 million of our 4.50% Notes in March 2008.
Michael Roth, Chairman and CEO of Interpublic, said: “Our 2008 results were very strong – we posted organic revenue growth that is at the top end of our industry and continued to demonstrate significant improvement in profitability. We are pleased with the progress we are seeing across all of our businesses.
“Our long-standing conservative approach to financial and balance sheet management has us well-positioned for these volatile times. Given that it’s unclear how pronounced or lasting the downturn will be, we must continue to remain focused on the basics: delivering value to our clients and ensuring that we continue to manage to our margins. These are the fundamentals that will allow us to come through this difficult period and ensure future growth.”
