Earlier this week, Octagon and GolinHarris announced a partnership, creating Octagon PR, a unit focused specifically on sports public relations strategy, ideation and execution.
The new alliance brings together two agencies of the Interpublic Group of Companies (IPG) that are leaders in their respective fields – Octagon, a pioneer in sports management and marketing, and GolinHarris, a top global public relations firm. Moreover, the partnership will fill an empty space in the marketplace and help in expanding the communications between the agencies.
Softness in ad spending by auto clients as well as weak trends in the marketing business has hurt IPG’s revenue and earnings in the second quarter 2009. Revenue dropped 20% to $1.47 billion from $1.84 billion during the same of previous year.
During the quarter, Interpublic Group reported a 76% drop in net profit as the global slump in advertising continued. Net profit was $20.9 million, or $0.04 per share, compared to $88.1 million, or $0.17 per share, in the year ago quarter.
The company’s balance sheet remains solid. Total debt was reduced to $2.04 billion from $2.12 billion as of December 31, 2008. Moreover, management is confident of being able to redeem the 2009 and 2010 maturities with cash in hand.
We believe that a solid balance sheet combined with improved financial systems and cost discipline should carry the company through the economic turmoil and help in thrive when demand for marketing services pick up as part of a broader recovery.
Read the full analyst report on “IPG”
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