Interpublic Group Of Companies (IPG), an advertising agencies and marketing services company, has announced a 20.05 percent rise in profit for the quarter ended Jun. 30, 2014.
The company earned $99.40 million or $0.23 a share in the second-quarter compared with $82.80 million or $0.18 a share a year ago. Non-GAAP earnings per share came in at $0.25, when analysts expected $0.25.
Revenue during the second-quarter climbed 5.42 percent to $1851.40 million from $1756.20 million in the last year period.
The company's operating income increased to $195.80 million, compared with operating income of $174.80 million in the previous year period. That has resulted in improvement of 62 basis points in operating margins to 10.58 percent.
''We are pleased to report a quarter of strong revenue, profit and earnings growth. Our operating results underscore the competitiveness of our agencies, and the quality of our offerings in key growth markets and disciplines,'' said Michael I. Roth, Interpublic's chairman and CEO. ''We are winning share in digital and marketing services, successfully innovating with our media offerings, and our global ad networks continue to trend positively. Our financial strength remains a source of significant value creation, and we will remain focused on cost discipline and executing on our 2014 plan. For the full year, we are well-positioned to exceed our organic growth target of 3-4% and improve operating margin by at least 100 basis points, to 10.3% or better. By doing so, we can build on recent performance and further enhance shareholder value.''
At Jun. 30, 2014, cash, cash equivalents and marketable securities totaled $901.4 million, compared to $1.64 billion at Dec. 31, 2013. Total debt was $1.76 billion at Jun. 30, 2014, compared to $1.66 billion at Dec. 31, 2013.
During the second quarter of 2014, the company issued $500 million in aggregate principal amount of its 4.20% Senior Notes due 2024. The majority of the net proceeds were used towards the redemption of all $350 million in aggregate principal amount of its 6.25% Notes.
The company repurchased 3.0 million shares of its common stock during the second quarter of 2014 at an aggregate cost of $52.4 million and an average price of $17.81 per share including fees.
During the second quarter of 2014, the company declared and paid a common stock cash dividend of $0.095 per share, for a total of $39.9 million.
Shares of Interpublic Group Of Companies declined $0.25 or 1.30 percent to settle at $19.03 on Thursday.
