IPG’s total Q2 revenue increases by 9.4 per cent
The holding company’s total second-quarter revenue increased to $2.4 billion and first-half net revenue grew 7.3 per cent to $4.6 billion
Interpublic Group announced a strong second quarter and first half of 2018 for the three- and six-month periods that ended on June 30, with total revenue beating the expectations of analysts, according to media reports.
As per the results announced on Tuesday evening, the holding company’s total second-quarter revenue increased 9.4 percent to $2.4 billion and first-half net revenue grew 7.3 percent to $4.6 billion.
The reports further reported second quarter net revenue increase of 6.2 per cent and organic net revenue increase of 5.6 per cent. "US organic net revenue growth was 4.6 per cent; International organic net revenue growth was 7.2 per cent. First half net revenue increase of 6.0 per cent; organic net revenue increase was 4.7 per cent," read the report.
"We are extremely pleased with our performance this quarter. Growth in the U.S. 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. This breadth highlights the competitiveness of our offerings, the talent of our people, the expanding value of our data and analytics practice, and our ability to bring collaborative open architecture solutions to market," said Michael I Roth, Interpublic's Chairman and CEO.
"This is an exciting time for our company. We continue to drive growth that leads our industry. Further, our announcement earlier this month to acquire Acxiom Marketing Solutions means that we are well-positioned to execute on the many opportunities that come with unrivaled industry resources in data management - capabilities that are key to driving future growth for our clients," added Roth.
"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," concluded Roth.
Other highlights from the report:-
- Second quarter operating income increase of 10.4 per cent to $249.2 million.
- Second quarter operating margin on net revenue of 12.8 per cent compared to 12.3 per cent in the prior year.
- Second quarter diluted earnings per share of $0.37 and $0.43 as adjusted for dispositions of certain small, non-strategic businesses during the quarter, compared with $0.27 and $0.30 as adjusted a year ago.
- First half diluted earnings per share of $0.34 and $0.45 as adjusted for business dispositions, compared with $0.33 and $0.36 as adjusted a year ago.
- Company increases full year target for organic net revenue growth to range of 4.0 per cent to 4.5 per cent, and maintains target of 60 -70 basis points of net operating margin expansion. The company margin target excludes expected non-recurring transaction costs.
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