Interpublic profits up thanks to Facebook gain

By Daniel Farey-Jones, campaignlive.co.uk, Monday, 31 October 2011 11:45AM

Interpublic (IPG) has reported third quarter net income of $217.5m (£179.2m), thanks to a massive gain from the sale of shares in Facebook as well as revenue growth of 11.1% year on year.

Michael Roth: chairman and chief executive, Interpublic

Michael Roth: chairman and chief executive, Interpublic

In the same quarter in 2010, IPG registered net income of $45.6m on revenues of $1.55bn.

The company's bottom line growth was somewhat flattered by a $132.2m pre-tax gain from the sale of approximately half its holdings in Facebook.

However, there was also substantial improvement in IPG's main business, which includes advertising agencies McCann Erickson and Draftfcb and media agencies Universal McCann and Initiative.

Revenue rose 11.1% year on year to $1.73bn, with organic growth of 8.7%.

UK revenue climbed 10.9% and by 4.3% on an organic growth basis. This helped operating income surge 72.9% to $173.2m.

Michael Roth, chairman and chief executive, said: "Though macro uncertainly remains, we are confident that our performance for the nine months has positioned us to meet or surpass our targets of 4%-5% organic revenue growth and operating margin of 9.5% or better."

Measured against the other marketing services groups which have reported third quarter results over the past two weeks, Interpublic’s organic growth is the highest.

Havas was next with 7.3%, Omnicom with 7.2%, Publicis with 6.4% then WPP with 4.7%.

Follow Daniel Farey-Jones on Twitter @danfareyjones

This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs

  • Campaign Marketing Manager EMAP Competitive + Bonus, London (Greater) / London (East), London (Greater)
  • Exhibition Designers WRG Live Competitive salary and benefits package dependant upon experience, Manchester, Greater Manchester
  • Producer WRG Live Competitve salary and benefits package dependent upon experience, London (Central), London (Greater) / Manchester, Greater Manchester
  • Content Manager WRG Live Competitive salary and benefits package, Manchester, Greater Manchester
  • Digital Insight and Analytics Consultant Direct Recruitment £70,000 - £80,000,