Grey Reports $6.6M Second Quarter Loss

Grey Advertising Inc. reported a net loss of $6.63 million for the second quarter of 1999 and a loss of $6.52 million for the six months ended June 30.

That compares to net income of $8.31 million and $13.35 million respectively, for the same periods in 1998.

Gross billings were $1.74 billion for the second quarter of 1999, an increase of 11.9%. The company said its 1999 performance is “being impacted by reduced levels of revenues at the company’s general advertising agency operations in the U.S. and abroad.”

However, the company said it recently has secured a number of new business assignments that are expected to contribute to top-line growth in the future. In the interactive arena, Grey recently acquired Beyond Interactive. The company said in a statement that its is committed to further expansion of its holdings in the Internet sector, adding that “these are all high-growth businesses that promise significant long-term returns.”

Recent new accounts include Oracle Corp., Hasbro for its Play-Doh global account, Stanley Tools for its pan-European account, Procter & Gamble for its Flash brands in Europe and Ivory brand in Asia-Pacific. British American Tobacco for its Rothmans, Dunhill, Vogue and Cartier global brands and AOL Europe for its account in Germany.

Grey Advertising, with operations in 90 countries, ranks as the world’s sixth largest advertising agency.