February 14, 2014 / 2:05 PM / 4 years ago

UPDATE 1-Ad agency Interpublic targets organic revenue growth of 3-4 pct

* 4th quarter overall revenue up 3 pct at $2.12 bln

* Revenue from U.S. rises 7 pct

Feb 14 (Reuters) - Interpublic Group of Cos, the no. 2 U.S. advertising company, reported a 3 percent rise in quarterly revenue, mainly helped by growth in its domestic market.

Interpublic, which counts Amazon.com Inc and General Motors Co’s Cadillac as customers, also said it was targeting 3-4 percent organic revenue growth this year. Organic revenue climbed 2.8 percent in 2013 from a year earlier.

The company, home to advertising agencies McCann Erickson and Draftfcb, announced a 27 percent increase in its quarterly cash dividend to 9.5 cents per share.

Bigger rival Omnicom Group Inc reported a better-than-estimated 2.9 percent rise in quarterly revenue due to growth in its international markets.

Weak demand from continental Europe last year forced Interpublic to cut costs in the region, including headcount reductions.

Revenue from continental Europe accounts for about 10 percent of the company’s revenue.

Interpublic’s net income fell to $193.1 million, or 44 cents per share, in the quarter ended Dec. 31, from $313.3 million, or 68 cents per share, a year earlier.

Excluding one-time items, the company earned 56 cents per share.

The company recorded restructuring charges of $60.6 million in the quarter, including those related to the headcount reductions in Europe.

Overall revenue rose 3 percent to $2.12 billion. Domestic revenue, which accounts for about half the company’s revenue, grew 7 percent.

Overall organic revenue rose 3.7 percent, helped by a 6.9 percent increase from outside the United States.

Analysts had expected a profit of 58 cents per share on revenue of $2.12 billion, according to Thomson Reuters I/B/E/S.

Interpublic also said it authorized a new share repurchase program of up to $300 million of the company’s common stock, effective immediately.

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