Revenue decline at IPG as US regulator starts investigation

Interpublic has revealed a set of lacklustre results, on top of news that it is to be investigated by US financial watchdogs.

The third-quarter results disclose that the group's revenues dropped by 7.4 per cent to $1.5 billion, with net income of just $7.5 million.

Interpublic admitted the results were "unacceptable" amid confirmation that the Securities and Exchange Commission is probing the company's planned restatement of its results for the last five years.

The world's second-largest communications group, which owns the McCann-Erickson and Lowe networks as well as Initiative Media, said it had overstated results by £42.7 million. Last week it revealed the figure was actually £113.2 million.

Interpublic said it was co-operating fully with the inquiry.

John Dooner, Interpublic's chairman, said: "With the restatement behind us we can now focus all our energy where it belongs - on our clients and our people."