(Reuters) - Advertising group Interpublic topped market estimates for second-quarter profit on Wednesday, boosted by a rebound in marketing spend by companies across key markets including the United States and Europe.
Shares of the company, however, fell 2.8% after it tightened its full-year organic growth forecast to about 1%, from its prior expectations of 1% to 2% growth.
After an extended period of muted ad spend by brands due to macro uncertainties and higher interest rates, companies have been ramping up marketing investments, particularly in the run up to key global events such as the Paris Olympics.
Global advertising revenue is expected to grow 7.8% in 2024 to $989.8 billion, according to a forecast from WPP (LON:WPP)'s media investment unit, GroupM. That compares to a 5.3% rise it had projected in December.
New York-based Interpublic, home to global communications and advertising agencies including Mediabrands, MullenLowe and Weber Shandwick, reported an adjusted profit of 61 cents per share in the second quarter ended June 30, above analysts' estimates of 59 cents, LSEG data showed.
Its net revenue was roughly flat at $2.33 billion, in line with analysts' average estimate. Revenue in the United States climbed 1.3%, while it jumped 6.3% in Continental Europe. Total international growth came in at 2.6%.
Rival Omnicom last week also topped quarterly profit and revenue expectations, thanks to strong growth in its advertising and media segment.