(Reuters) - Advertising company Interpublic Group of Cos (IPG.N) reported quarterly revenue that missed analysts’ estimates as a tough economic environment slowed international growth.
The company said revenue in the first quarter from its international markets, which accounted for about 37 percent of its total revenue, fell 1.3 percent to $642.1 million.
Interpublic, whose agencies include MullenLowe Group, McCann and FCB, reported organic revenue growth of 2.2 percent in its international markets.
Analysts on average had expected an international organic growth rate of 4.7 percent, according to market research firm FactSet StreetAccount.
However, the company’s net income available to shareholders jumped nearly four-fold to $21.5 million, or 5 cents per share, in the quarter ended March 31, as total expenses fell 58.6 percent.
Analysts on average had expected the company to earn 3 cents per share, according to Thomson Reuters I/B/E/S.
U.S. rival Omnicom Group Inc (OMC.N) reported slower-than-expected quarterly growth in North America, while France’s Publicis (PUBP.PA) said it suffered less than expected in the first quarter from losses on big U.S. media accounts.
The “big four” ad agencies in the world including Interpublic received subpoenas from the U.S. Department of Justice in December as part of an investigation into video production practices in the industry.
Interpublic’s net revenue in the latest quarter rose marginally to $1.75 billion, missing analysts’ estimate of $1.76 billion.
Up to Thursday close, Interpublic’s stock had risen 8.2 percent in the last 12 months.
Reporting by Amy Caren Daniel in Bengaluru; Editing by Maju Samuel