Interpublic Group up 3.2% on Q1 beat, organic growth

• Advertising firm Interpublic Group (NYSE:IPG) is up 3.2% as it beat expectations for a loss with a break-even Q1 that showed some promising gains in revenue that grew 2.4% Y/Y.
• While revenue of $1.68B only beat by $30M, organic revenue was up 5.7% (more than 6% in the U.S.).
• Operating income was $7.8M compared to an operating loss of $11.7M in the prior year. Operating margin was 0.5% (up from -0.7% last year).
• Salaries/related expenses were $1.22B, up 2.2%, though staff cost ratio (percentage of revenue) was up only fractionally, to 72.6%.
• Cash and equivalents at quarter's end were $741.2M, down from the previous quarter's $1.67B. Total debt of $1.76B.
• For 2015, the company recommitted to goals: "We believe that we remain well positioned to achieve our 2015 targets of 3-4% organic revenue growth and 80-100 basis points of improvement in operating margin, thereby further enhancing shareholder value," says Chairman and CEO Michael Roth.
• Press release