IPG has announced it has posted 7.9 per cent year-over-year organic net revenue growth in the second quarter of 2022 to $US2.38 billion ($A3.44 billion.)
It comes on the same day that rival agency Publicis Groupe announced its organic growth was up 10.3 per cent. Read B&T’s reporting of that HERE.
The US was IPG’s strongest performing market, its organic revenues up 8.8 per cent. APAC – were Australia is reported – was up 4.8 per cent. COVID-hit China was the only IPG market to go in reverse.
The results led IPG to raise its 2022 growth forecast from six per cent to 6.5 per cent.
Commenting on the numbers, Philippe Krakowsky (lead image), CEO of IPG. said: “As expected…that is below last year’s second quarter [margin]…when our growth had begun to accelerate very significantly, yet certain variable expenses were historically low due to the effects of the pandemic.”
The agency’s margins fell to 15.6 per cent (they were 17.9 per cent in 2021) namely due to salary increases, office reopenings and staff travel. Krakowsky announced that overall staff numbers had increased by a whopping nine per cent YOY.
“Pressure on labor markets…hasn’t fully abated, but it’s definitely slowing,” Pressure on labor markets…hasn’t fully abated, but it’s definitely slowing,” Krakowsky said.
“Our comps are very challenging, and I’ll take that,” he said. “A lot of that is just the math, and I’d reiterate that the momentum in the business is healthy and the demand for what we do is healthy,” he added.
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