-Young & Rubicam has announced financial losses in its results both for the second quarter and first half ending June 30 1998, as a result of charges arising from its partial flotation earlier in the year.
In the first set of results to be released since its part listing on the US stock exchange in May, Young & Rubicam reported a net loss for the second quarter of 1998 of $149.8 million and a net loss for the first half of 1998 of $137.6 million. The company said that excluding the aggregate after-tax effect of these non-cash charges, Y&R's pro forma net income would have been approximately $24.5 million in the second quarter.
The losses come on revenues of $372.1 million for the second quarter of 1998 and $720.3 million for the first half of 1998, an increase of 7.7% and 11.9% over the comparable periods last year.
The Company's operating margin for the second quarter of 1998 was 11.8%, and 9.6% for the first half of 1998, excluding non-recurring, non-cash charges taken at the time of the public offering. These margins represent substantial improvement over the operating margins of 10.2% for the second quarter, and 7.7% for the first half of 1997.
Young & Rubicam completed its initial public offering on May 15, 1998. Approximately 19 million shares of the Company's common stock were offered to the public, of which approximately 7 million shares were sold by the Company and approximately 12 million shares were sold by certain selling stockholders.