IPG Beats Expectations in First Quarter, Reports Strong Growth in U.S.
Interpublic Group of Cos.’ revenue increased 3.9% to $1.74 billion in the first quarter of 2016 compared to the same period last year, the agency company giant said Friday. Organic revenue excluding one-time factors such as acquisitions and external forces such as currency fluctuation rose 6.7%.
Operating income was $20.9 million, compared with operating income of $7.8 million a year ago. Operating margin was 1.2% for the quarter, compared to 0.5% a year earlier. Net income was $5.4 million during the first quarter, compared to a net loss of $1.8 million for the period last year.
The company slightly beat expectations of $1.71 billion in revenue, according to Yahoo Finance. IPG also surpassed JP Morgan’s estimate of 4.5% organic revenue growth for the quarter.
“Our growth continues to reflect contributions from nearly all of our major agencies, led in Q1 by McCann, R/GA, Huge, FCB, Mediabrands and Weber Shandwick.” – IPG CEO Michael Roth
Mr. Roth added that IPG acheived 12% organic revenue growth across its top 20 clients by providing them with integrated services across multiple disciplines, such as PR, experiential marketing and media. This growth, he said, “represents the strength of the opportunities within our existing clients.”
And finally, U.S. organic revenue growth was “notably strong” at 8.3%, “where we continued to see outstanding contributions across a very broad range of agencies, disciplines and client sectors” the company said.
International organic growth was 4.3%, with all regions contributing, especially Latin America with 11.6% organic growth.