Interpublic upgrades 2016 growth forecast after 'solid' third quarter

Interpublic Group has posted "solid" revenue and profit increases for the third quarter of the year and has upgraded its full year organic growth forecast to be between 4% and 5%.

Michael Roth: chairman and CEO of Interpublic Group
Michael Roth: chairman and CEO of Interpublic Group

The owner of McCann and MullenLowe networks reported a 3% revenue increase to $1.92bn (£1.57m), with an organic revenue increase of 4.3% for the three months to 30 September.

So far, IPG has reported the highest organic growth rate this year among the major holding companies, with Omnicom reporting 3.2% and Publicis Groupe reporting 0.2%. WPP is due to report its third quarter results later this month. 

Its operating income in the third quarter of 2016 grew 8% year on year to $207.2m.

Its US growth lagged behind overall performance at 1.8%, while its international business grew 8.1%.

Michael Roth, the chairman and chief executive of Interpublic Group, said: "The quarter reflected solid revenue and profit increases, with positive momentum from a broad range of our creative, marketing services and media offerings.

"Our digital capabilities also continued to be very significant drivers of growth, which demonstrates that we remain highly relevant in today's complex media and marketing landscape. Operationally, we once again demonstrated the ability to manage expenses effectively, a key priority for us.

"Going forward, the overall tone of business remains solid and, in light of the strength of our offerings and our organic revenue performance through nine months, we believe it's appropriate to raise our full-year organic growth target to a range of 4% to 5%."

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