Advertising company Interpublic beats quarterly estimates for resilient client spending

(Reuters) – AD Group Interpublic surpassed its second quarter revenue and profit analyst estimates for Tuesday, boosting its shares by 3% before Bell thanks to resilient marketing spending from clients.

The results are the latest indication that AD spending is binding a solid economy to an uncertain economy after French advertising giants Publicis and Omnicom also reported bright income. The increase in the use of AI to create ads has sparked concern about the industry, which was a creative voice for brands.

Interpublic benefited from strong spending from media and healthcare-focused companies in the April-June quarter, as well as the growth of its sports marketing and public relations forces, CEO Philip Krakowsky said.

By signing a $13.25 billion merger with Omnicom last year to establish the world’s largest advertising agency and better navigate the changing industry landscape, the company also said it expects the deal to close later this year.

Interpublic’s media services are managed through IPG Mediabrands. This includes brands such as Initiatives and MediaHub. Its healthcare marketing is managed under a unified IPG health network.

According to data compiled by LSEG, the company reported second-quarter revenue of $2.54 billion, compared to an analyst average estimate of $2.17 billion.

Adjusted earnings per share of 75 cents also won the 56 cents estimate.

(Reporting by Jaspreet Singh of Bengaluru, Editing by Shilpi Majumdar)