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Interpublic’s Q3 revenue grows 3.4%

Interpublic Group recorded a net revenue of $1.90 billion in the third quarter of 2018 an increase of 3.4 per cent compared with the same period in 2017. During the quarter, the organic net revenue increase was 5.4 per cent, while the effect of foreign currency translation was negative 1.3 per cent, and the impact of net divestitures was negative 0.7 per cent. Total revenue of $2.30 billion in the third quarter of 2018 increased 4.0 per cent compared with the same period in 2017.

Net revenue of $5.62 billion in the first nine months of 2018 increased 5.2 per cent compared with the same period in 2017. During the first nine months, the organic net revenue increase was 4.9 per cent, the effect of foreign currency translation was positive 1.0 per cent, and the impact of net divestitures was negative 0.7 per cent. Total revenue of $6.86 billion in the first nine months of 2018 increased 6.2 per cent compared with the same period in 2017.

“We are extremely pleased with our performance this quarter and year-to-date. We continue to deliver notably strong growth in the U.S. and in many international regions. These results were driven by strong top- and bottom-line performance in media, as well as growth from our three global creative networks, our marketing services agencies and our digital offerings. Our agency brands and our talent across the portfolio remain among the best in their respective disciplines, which gives us confidence in the long-term competitiveness of our offerings and our client-centric service model,” said Michael I. Roth, Interpublic’s Chairman and CEO.

Operating income in the third quarter of 2018 was $261.7 million, and adjusted operating income excluding transaction costs was $272.7 million, compared to $255.0 million in 2017.

For the first nine months of 2018, operating income was $549.7 million, and adjusted operating income excluding transaction costs was $562.1 million compared to $515.4 million in 2017. For the first nine months of 2018, operating margin on net revenue was 9.8 per cent and adjusted operating margin on net revenue when excluding $12.4 million of transaction costs was 10.0 per cent, compared to 9.6 per cent in 2017.

“With the completion of the Acxiom acquisition, we have a strengthened position to help clients succeed in a world where data-driven marketing solutions are increasingly core to brands’ success. We also feel that we remain positioned to achieve our previously stated goal of net revenue organic growth of 4.0 per cent to 4.5 per cent and margin expansion of 60 to 70 basis points. Combined with our commitment to deleverage our balance sheet and our strong history of capital return programs, including dividend increases, this will allow us to further enhance shareholder value,” concluded Mr Roth.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.
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