Advertising giant Interpublic Group of Cos Inc (NYSE:IPG) has boosted its fourth quarter dividend by 20% as its earnings beat forecasts as US businesses continued to spend on campaigns following the presidential election.
The ad firm said its net income rose to US$317.6mln, or 78 cents per share, in the three months to December 31, up from US$260.3mln, or 63 cents per share at the same stage a year earlier.
Excluding items, Interpublic earned 75 US cents per share beating the average analyst estimate of 67 US cents per share.
Interpublic – one of the “big four” ad agencies of the world – said its overall net revenues rose about 3% in the fourth quarter to US$2.26bn, in line with forecasts.
The firm, whose clients include Johnson & Johnson , Microsoft Corp and Coca-Cola Co, said revenue from international markets, which accounts for over 44% of total revenues, rose by 3.2%
The company raised its quarterly dividend to 18 US cents a share and also unveiled a new US$300mln share buy-back programme.
Interpublic’s shares, which have gained around 14% in the past 12 months, were up 3% in pre-market trading in New York.
Story by ProactiveInvestors