DOW JONES NEWSWIRES 
 

Interpublic Group of Cos.' (IPG) first-quarter net loss widened on falling revenue and higher operating costs as the advertising giant continues to see weakened demand for marketing services.

A decline in ad spending has plagued marketing companies and print media alike. In response, Interpublic is experimenting with new media, as advertising on the Internet is predicted to buck that trend.

Chairman and Chief Executive Michael I. Roth said excluding severance costs, operating performance in the first quarter was in line with a year earlier.

The parent company of DraftFCB and McCann-Erickson posted a net loss of $73.6 million, or 16 cents a share, compared with a year-earlier net loss of $63.4 million, or 15 cents a share.

Revenue dropped 11% to $1.33 billion, down 8% domestically and 14% abroad. Organic revenue, which excludes currency changes and acquisitions, fell 5.6%.

A survey of analysts by Thomson Reuters on average projected a 20-cent loss on revenue of $1.3 billion.

Total operating costs rose 8.8%.

Shares closed at $5.54 Monday and weren't active premarket. The stock is up 40% so far this year after falling in November to lows not seen since early 1986.

-By Joan E. Solsman and Kevin Kingsbury, Dow Jones Newswires; 201-938-5500; joan.solsman@dowjones.com