Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

IPG Q2 organic revenues witness 3.7% growth

IPG Q2 organic revenues witness 3.7% growth

Author | exchange4media News Service | Friday, Jul 22,2016 8:33 AM

A+
AA
A-
IPG Q2 organic revenues witness 3.7% growth

Interpublic has announced its second quarter and first half 2016 results. As per the results, the second quarter witnessed revenue increase of 2.2% and organic revenue increase of 3.7%. While the first half operating profit increased by 9.9% relative to 2015, and diluted earnings per share increased to $0.40, or $0.33 as adjusted for below-the-line items, from $0.29 a year ago.

Moreover, first half 2016 revenue increased 3.0% to $3.66 billion, compared to $3.55 billion in the first half of 2015, with an organic revenue increase of 5.1% compared to the prior-year period. This was comprised of an organic revenue increase of 6.4% in the U.S. and 3.2% internationally. Operating income in the second quarter of 2016 was $224.8 million, compared to $215.8 million in 2015. Operating margin was 11.7% for the second quarter of 2016, compared to 11.5% in 2015.

First half 2016 net income available to IPG common stockholders was $162.3 million, resulting in earnings of $0.41 per basic share and $0.40 per diluted share. This compares to net income available to IPG common stockholders a year ago of $119.4 million, resulting in basic and diluted earnings per share of $0.29.

Operating Results

Revenue

Revenue of $1.92 billion in the second quarter of 2016 increased 2.2% compared with the same period in 2015. During the quarter, the effect of foreign currency translation was negative 1.8%, the impact of net acquisitions was positive 0.3%, and the resulting organic revenue increase was 3.7%. Revenue of $3.66 billion in the first half of 2016 increased 3.0% compared with the first half of 2015. During the first half of 2016, the effect of foreign currency translation was negative 2.4%, the impact of net acquisitions was positive 0.3%, and the resulting organic revenue increase was 5.1%.

Operating Expenses

Total operating expenses increased 2.0% in the second quarter of 2016 from a year ago, compared with revenue growth of 2.2%, and increased 2.6% in the first half of 2016 from a year ago, compared with revenue growth of 3.0%. During the second quarter of 2016, salaries and related expenses were $1.23 billion, an increase of 2.0% compared to the same period in 2015. During the first half of 2016, salaries and related expenses were $2.50 billion, an increase of 3.3% compared to the same period in 2015.

Balance Sheet

At June 30, 2016, cash, cash equivalents and marketable securities totaled $675.4 million, compared to $1.51 billion at December 31, 2015 and $855.6 million at June 30, 2015. Total debt was $1.82 billion at June 30, 2016, compared to $1.76 billion at December 31, 2015.

Write A Comment