Interpublic (IPG) has announced its Q3 revenues for the year grew a staggering 15 per cent, a number the holding company’s CEO Philippe Krakowsky (main photo) described as “remarkable”.
The New York-headquarted agency now boasts the best numbers of the holding companies to report thus far, with rival Publicis up 11.2 per cent and Omnicom up 11.5 per cent.
IPG reported its net revenues were up 15 per cent to $US2.26 billion (2020 revenues were $US1.95 billion at this time last year),
Organic revenue grew 14.7 per cent in the US, and 15.4 per cent internationally. IPG is forecasting 11 per cent organic revenue growth for the year.
Highlights of the Q3 numbers include (all numbers are US dollars):
- Third quarter net revenue was $2.26 billion, an increase of 15.7 per cent from a year ago, with organic growth of 15 per cent
- Net income was $239.9 million, with adjusted EBITA before restructuring charges of $369.5 million and margin of 16.3 per cent on net revenue
- Third quarter diluted EPS was $0.60 as reported, and $0.63 as adjusted compared with $0.53 a year ago
- Company upgrades expectation for FY 2021 financial performance to organic growth of approximately 11 per cent and adjusted EBITA margin of approximately 16.8 per cent, based on continued progress on public health and sustained macro recovery
Krakowsky commented: “We are pleased with our third quarter performance, which was highlighted by strong revenue growth in all world regions and across our operating segments, and driven by broad-based contributions across our agencies and client sectors. Given 15 per cent organic revenue growth from a year ago, our two-year organic increase on that important metric was 10.7 per cent relative to the third quarter of 2019, which demonstrates the strength and relevance of our evolving offerings. The quarter was similarly highlighted by margin expansion compared to last year and well ahead of the third quarter of 2019. These remarkable results are thanks to our people, across all of Interpublic, who have continued to show a high level of dedication and support – to our clients and to one another. The combination of our exceptionally talented people, and a balanced portfolio of capabilities and expertise, continues to set a high competitive standard.”
“The strategic steps we have taken over the long-term position us as a high value business partner that helps marketers thrive in the digital economy. By combining the power of creativity with the benefits of data and technology, we can create integrated solutions that are precise and accountable, solving business issues and driving growth for clients across a range of industry sectors. A culture that values diversity, corporate responsibility, and a transparent and ethical approach to the deployment of data further differentiates IPG.”
“With the level of performance we are showing through nine months, we are pleased to increase our financial objectives for the full year. Based on expectations of a reasonably steady course of improvement in the public health situation and attendant global economic recovery, we expect that we can deliver organic growth for the year of approximately 11 per cent. With growth at that level, we expect to achieve adjusted EBITA margin of approximately 16.8 per cent. As such, we see significant opportunity to create further value for all of our stakeholders,” Krakowsky said.