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.