Interpublic has announced second quarter and first half 2015 results. It reported second quarter organic revenue increase of 6.7% and reported revenue increase of 1.3%, second quarter operating margin of 11.5% compared to 10.6% in the prior-year period and operating income growth of 10.2% to $215.8 million.
It also reported second quarter diluted earnings per share of $0.29, a 16.0% increase from $0.25 per diluted share a year ago, excluding the charge of $0.02 for early extinguishment of debt in 2014. First half organic revenue increased by 6.2%, operating profit increase of 21.5% and diluted earnings per share increased by 45.0% over last year's diluted earnings per share excluding the same charge.
Second quarter 2015 revenue was $1.88 billion, compared to $1.85 billion in the second quarter of 2014, with an organic revenue increase of 6.7% compared to the prior-year period. This was comprised of an organic increase of 7.7% in the U.S. and 5.3% internationally.
First half 2015 revenue was $3.55 billion, compared to $3.49 billion in the first half of 2014, with an organic revenue increase of 6.2% compared to the prior-year period. This was comprised of an organic revenue increase of 7.0% in the U.S. and 5.2% internationally.
Operating income in the second quarter of 2015 was $215.8 million, compared to operating income of $195.8 million in 2014. Operating margin was 11.5% for the second quarter of 2015, compared to 10.6% in 2014.
For the first half of 2015, operating income was $223.6 million, compared to operating income of $184.1 million in 2014. Operating margin was 6.3% for the first half of 2015, compared to 5.3% for the first half of 2014.
Second quarter 2015 net income available to IPG common stockholders was $121.2 million, resulting in earnings of $0.30 per basic share and $0.29 per diluted share. This compares to net income available to IPG common stockholders a year ago of $99.4 million, or $0.24 per basic share and $0.23 per diluted share. Excluding the impact of the early extinguishment of the company's 6.25% Senior Unsecured Notes due 2014 (the "6.25% Notes"), basic and diluted earnings per share in the second quarter of 2014 were $0.25.
First half 2015 net income available to IPG common stockholders was $119.4 million, resulting in basic and diluted earnings per share of $0.29. This compares to net income available to IPG common stockholders of a year ago of $78.5 million, or $0.19 per basic share and $0.18 per diluted share. Excluding the impact of the early extinguishment of the 6.25% Notes, basic and diluted earnings per share were $0.20.
“We are pleased to report another quarter of strong organic revenue as well as profit growth. We saw positive contributions to our top-line performance from a broad range of our creative, marketing services and media offerings," said Michael I. Roth, Interpublic's Chairman and CEO. "Our digital capabilities, which we have chosen to embed at every one of our agencies and we've largely developed organically, are consistently among the best in the industry. These digital services continued to be significant drivers of growth for us this past quarter. Regionally, our largest markets were standouts, as the US, AsiaPac and the UK all showed very good growth. We remain focused on cost discipline, as evident in our results, as well as committed to capital return programs that remain a source of significant value creation. At the midway point of the year, we believe that the appropriate organic growth target for 2015 is now 4-5%. Consistent with that, we will look to deliver toward the upper end of our full-year operating margin target of 80-100 basis points improvement over 2014. As always, our focus will be on the caliber of our people, our clients’ success, and further enhancing shareholder value.”