IPG posts flat first quarter revenue growth

Interpublic Group reported revenues of $1.75bn (£1.37bn) in the first three months of the year, up 0.7% year on year.

Roth (l) speaking at the 4A's Transformation conference in April
Roth (l) speaking at the 4A's Transformation conference in April

Organic revenue showed stronger growth, increasing 2.7% compared with the first quarter of 2016. This was comprised of an increase of 2.9% in the US and 2.2% in all other markets. 

This growth is muted when compared with the 6.7% posted in the same period last year

Nevertheless, IPG posted a higher operating income (earnings before interest and taxes) of $29.7m this year compared with $23m in 2016. 

"The first quarter is seasonally small for us, but our first quarter results are consistent with the view we had coming into the year, and the tone of the business remains sound," Michael Roth, Interpublic's chairman and chief executive said in a statement.

Roth went on to say that IPG is on track to deliver on its full-year organic revenue target of 3% to 4%, as well as improving its base operating margin by an additional 50 basis points relative to 2016. 

IPG's operating margins increased by 40 basis points in the first quarter of the year compared to the same period last year. 

The group's total operating expenses increased 0.3% in the first quarter of 2017 from a year ago, compared with revenue growth of 0.7%.

Yesterday IPG Mediabrands' UM received a boost after winning Accenture's global media account, which brought an end to the consultancy's 30-year relationship with MEC. 

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk plus get exclusive discounts to Campaign events

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Making media fun again: why we must free our industry from outdated models
Shares0
Share

1 Making media fun again: why we must free our industry from outdated models

The industry needs an audience-first media revolution that balances brand and outcomes, writes Mindshare's global chief executive.

Just published

More