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Interpublic Group Of Companies, Inc. has a market cap of $5.14 billion; its shares were traded at around $9.92 with a P/E ratio of 15.7 and P/S ratio of 0.7. The dividend yield of Interpublic Group Of Companies, Inc. stocks is 2.1%. Interpublic Group Of Companies, Inc. had an annual average earning growth of 0.3% over the past 10 years.
Highlight of Business Operations:During the second quarter of 2012, our revenue decreased by $25.0, or 1.4%, compared to the second quarter of 2011, due to an adverse foreign currency rate impact of $49.7, partially offset by an organic revenue increase of $13.5, or 0.8%, and the effect of net acquisitions of $11.2. Our organic revenue increase was primarily attributable to net higher spending from existing clients and new clients in our international markets, most notably in the Asia Pacific region, across many key markets, and in the Latin America region, predominantly in Brazil. The organic revenue increase in our international markets was in nearly all client sectors, most notably in the food and beverage and technology and telecom sectors. In our domestic market, the organic revenue decrease was primarily due to net client losses in the prior year in the consumer goods and technology and telecom sectors, and a decline in spending from existing clients, primarily in the health care and retail sectors. Partially offsetting this decline in the domestic market was growth in other client sectors.
During the first half of 2012, our revenue increased by $7.0, or 0.2%, compared to the first half of 2011, due to an organic revenue increase of $54.7, or 1.7%, and the effect of net acquisitions of $18.1, partially offset by an adverse foreign currency rate impact of $65.8. Our organic revenue increase in our international markets was primarily driven by factors similar to those noted above for the second quarter of 2012. In our domestic market, the organic revenue decrease, which occurred during the second quarter of 2012, was primarily driven by factors similar to those noted above. Partially offsetting the organic revenue decrease in the domestic market was an increase in the auto and transportation sector, which primarily occurred in the first quarter of 2012.
Our staff cost ratio, defined as salaries and related expenses as a percentage of total consolidated revenue, increased in the second quarter of 2012 to 63.5% from 62.9% in the prior-year period. Salaries and related expenses in the second quarter of 2012 decreased by $6.8 compared to the second quarter of 2011, primarily due to a favorable foreign currency rate impact of $32.5, partially offset by an organic increase of $17.0 and the effect of net acquisitions of $8.7. The organic increase was primarily attributable to increases in our workforce, which occurred predominantly over the course of 2011 to support business growth, as well as modest wage increases, resulting in an increase in base salaries, benefits and temporary help of $16.4. The organic increase occurred across regions and businesses where we had revenue growth.
Our tax rates are affected by many factors, including our worldwide earnings from various countries, changes in legislation and tax characteristics of our income. For the three months ended June 30, 2012, our effective income tax rate of 32.3% was positively impacted by a $26.2 reversal of valuation allowance associated with the Asia Pacific region. The reversal was partially offset by an adjustment of $19.5 associated with the establishment of a reserve for a tax contingency for the years 2007 through 2010. Combined, these two items increased net income for the second quarter by $6.7.
During the first half of 2012, IAN revenue decreased by $40.4 compared to the first half of 2011, consisting of an adverse foreign currency rate impact of $61.7, partially offset by an organic revenue increase of $12.6 and the effect of net acquisitions of $8.7. The organic revenue increase in our international markets was primarily driven by factors similar to those noted above for the second quarter of 2012. In our domestic market, the organic revenue decrease, which occurred during the second quarter of 2012, was primarily driven by factors similar to those noted above. Partially offsetting the organic revenue decrease in the domestic market was an increase in the auto and transportation sector, which primarily occurred in the first quarter of 2012.
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