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(Reuters) - Advertising group Interpublic beat fourth-quarter revenue estimates on Thursday, but warned that cost cuts by companies in the tech and telecom sectors could continue to weigh on its growth this year.
The New York-based company, which has clients in sectors ranging from healthcare to retail, edged past estimates for fourth-quarter net revenue.
Rival Omnicom also reported better-than-expected quarterly revenue earlier this week.
Interpublic continues to expect the conflict in the Middle East and "austerity among clients in the tech and telecom sector" to impact the company's overall growth, CEO Philippe Krakowsky said.
While Big Tech and media companies in the U.S. continue to announce fresh job cuts, the Israel-Hamas conflict has also clouded the economic backdrop.
Interpublic's revenue from its international markets group, made up of Canada, the Middle East and Africa, fell 1.4% in the quarter on an organic basis, compared with 6.9% growth a year earlier, CFO Ellen Johnson said, adding that the fall was mostly due to a double-digit percentage decrease in Israel.
The company announced a new share repurchase program of up to $320 million and said its board has approved a 6% increase in dividend to $0.33 per share.
Interpublic, which also owns McCann, Mediabrands and MullenLowe, recorded fourth-quarter revenue of $2.59 billion, compared with estimates of $2.57 billion, according to LSEG data.
On an adjusted basis, the company earned $1.18, beating estimates of $1.13 per share.
Interpublic's shares were up 1.5% at $32.70 in choppy trading.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta)
