Global advertising firm
The Interpublic Group of Companies, Inc.
) recently announced that its board of directors authorized an
increase in its share repurchase program from $300 million to
$500 million. The authorization entails the company to repurchase
additional shares worth $200 million resulting from the
conversion of 4.75% convertible Notes.
During 2012, Interpublic repurchased 32.7 million shares for
$350.5 million and share count decreased by about 11%. Over the
years, Interpublic has consistently returned significant cash to
its shareholders through dividends and share repurchases. The
company paid a first quarter 2013 dividend of 7.5 cents or 30
cents per share on an annualized basis, which marked a
year-over-year hike of 25%.
Moving ahead, the company plans to focus on debt reduction
opportunities for improving its balance sheet and reducing
effective cost of debt. Interpublic's best-in-industry talent
pool and expertise are expected to offer optimal and affordable
solutions, thus rendering an edge over its peers.
New York-based, Interpublic together with its subsidiaries,
provides advertising and marketing services worldwide. The
company is the third largest advertising company in the
It offers a range of advertising and marketing communication
services, as well as marketing services, public relations,
meeting and event production, sports and entertainment marketing,
corporate and brand identity, and strategic marketing consulting
services to a broad list of customers in more than 100 countries.
INTERPUBLIC GRP (IPG): Free Stock Analysis
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PUBLICIS GP-ADR (PUBGY): Free Stock Analysis
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Interpublic focuses on point-to-point client interaction, which
enables accurate decision-making and enhanced customer focus. The
company has two revenue segments, Integrated Agency Networks
(IAN), comprising Draftfcb, Lowe, McCann Worldgroup, Mediabrands
and domestic integrated agencies, and Constituency Management
Group (CMG), consisting of a number of specialist marketing
Other companies in the industry worth mentioning include
Omnicom Group Inc.
Publicis Groupe SA
). Interpublic currently has a Zacks Rank #3 (Hold).