Omnicom, Interpublic post improved 1Q results

NEW YORK (AP) -- Marketing and advertising companies Omnicom and Interpublic reported better-than-expected revenue for the first quarter Tuesday, thanks to stronger demand in the U.S. and in some international markets.

Omnicom's earnings edged higher than a year ago while Interpublic reported a smaller loss.

Omnicom, which is in the process of merging with France's Publicis Groupe SA, owns BBDO Worldwide, DDB Worldwide Communications Group and others. Interpublic owns BPN, FCB, FutureBrand and other advertising agencies.

New York-based Omnicom Group Inc. said revenue grew the most in Latin America at 7.4 percent. Revenue rose 4.8 percent in North America, 5.7 percent in the Asia Pacific region, 6.6 percent in Africa and the Middle East and 2.3 percent in Europe.

Omnicom said its net income rose to $201.4 million, or 77 cents per share, in the quarter ending March 31, compared with $199.7 million, or 76 cents per share, a year ago.

Excluding expenses related to a merger, the company reported earnings of 80 cents per share. That's better than the 79 cents per share analysts surveyed by FactSet expected. Revenue rose 3 percent to $3.5 billion from $3.4 billion. Analysts expected revenue of $3.48 billion.

Interpublic Group of Cos., also based in New York, said revenue for its U.S. businesses rose 5 percent. It rose 7.7 percent in international markets, with Latin American and Asia having "significant growth," said CEO Michael Roth.

For the quarter ending March 31, Interpublic reported a loss of $20.9 million, or 5 cents per share. That's compared with a loss of $59.2 million, or 14 cents per share, in the same period a year ago. Revenue rose 6 percent to $1.64 billion from $1.54 billion. The results beat analyst expectations of a loss of 8 cents per share and revenue of $1.6 billion.

In morning trading, shares of Omnicom fell $1.70, or 2.4 percent, to $69.79 while Interpublic rose 66 cents, or 3.9 percent, to $17.53.