- Young & Rubicam has reported third quarter net profit of $24.3 million, up from a net loss of $5.7 million last year, on revenues of $375.4 million, up 12.6% on the third quarter of 1997.
However, for the first nine months of 1998, Y&R reported a net loss of $113.3 million , compared to a net profit of $11.9 million for the same period in 1997.
Revenue for the first nine months of 1998 was $1,095.7 million, a 12.1% increase on last year. Excluding acquisitions and foreign currency fluctuations, revenues increased 14% in the third quarter and 15.1% in the first nine months, over the comparable periods in 1997.
Peter Georgescu, the Y&R chief executive, said: "Our focus on providing integrated solutions for our clients continues to provide the foundation for strong organic growth. The significant new assignments from Ford, Sony, Danone and Schweppes during 1998 reinforce our belief that our existing clients are not only our highest priority; they also represent our best growth opportunities."
During the third quarter, Y&R announced it had signed a letter of intent to acquire units of the Leap Group, including One World Communications, Kang & Lee Advertising and other multi-cultural accounts.
In August 1998, Y & R announced a stock buyback programme for up to two million shares of common stock. On 13 October, 1998, the company announced an additional repurchase programme of up to an additional six million shares of common stock over the next two years.
As of 3 November, 1998, a total of approximately 1.7 million shares had been repurchased at an average price of $26.63. The shares are being purchased under these programmes principally in anticipation of exercises of the outstanding employee stock options, and will probably be reissued to employees as options are exercised.