Interpublic Group (IPG) has something to cheer about after reporting strong financial results for the first half of the year.
The company’s net revenue increased 6 per cent to US$3.72 billion in the six months to 30 June 2018, compared to US$3.51 billion in the first half of 2017, with an organic net revenue increase of 4.7 per cent compared to the prior-year period.
This was comprised of an organic net increase of 4.5 per cent in the US and 5.1 per cent internationally.
In breaking down the international organic net revenue growth, the Asia-Pacific came last (1.9 per cent) behind the UK (14.7 per cent), Continental Europe (11.7 per cent) and Latin America (4.6 per cent).
The solid first-half results were helped by a positive second quarter, with net revenue increasing 6.2 per cent to US$1.95 billion, compared to $1.83 billion in the second quarter of 2017. Organic net revenue was up 5.6 per cent in Q2 compared to the prior-year period.
IPG chairman and CEO Michael Roth said: “We are extremely pleased with our performance this quarter. Growth in the US continued to be strong and international growth accelerated.
“The results were led by exceptional performance in media and at our creatively-led integrated agencies, as well as contributions from our digital services, public relations, events and sports marketing.
“Our results year-to-date, coupled with our expectations for the remainder of the year, have led us to increase our organic growth target, and we now expect to deliver net revenue organic growth of 4 to 4.5 per cent in 2018.
“We remain committed to furthering our long-term record of margin expansion with 60 to 70 basis points of improvement, as targeted coming into the year.
“We view our current performance and long-term strategy as significant factors that will continue to further value creation and enhance shareholder value.”
IPG’s results come shortly after it announced it would acquire Acxiom’s marketing solutions business for $US2.3 billion.