Interpublic Group of Companies (IPG) reported its first quarter results for 2017, showing a revenue increase of 0.7 per cent and organic revenue increase of 2.7 per cent.
The Q1 revenue increased 0.7 per cent to USD 1.75 billion, compared to USD 1.74 billion in the first quarter of 2016, with an organic revenue increase of 2.7 per cent compared to the prior-year period. This was comprised of an organic increase of 2.9 per cent in the US and 2.2 per cent internationally.
Michael I. Roth, Interpublic’s Chairman and CEO said, “Against very challenging comparisons, we showed solid organic revenue growth in the quarter, with contributions from across our agencies and all marketing disciplines. Operating margin increased 40 basis points compared to last year’s first quarter. Underlying this performance is the excellence of our people. Outstanding consumer insights, industry-leading creativity, top tier digital capabilities, and the delivery of efficient and precisely targeted communications have all become hallmarks of the agencies in our portfolio. By continuing to deliver integrated ‘open architecture’ solutions and increasing investment in our holistic data platform, we will ensure that we stay highly relevant in today’s complex marketing landscape.”
Operating income for Q1 2017 was at $29.7 million, compared to $23 million 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. We therefore believe we are well positioned to achieve our full year targets of organic revenue in the 3 per cent to 4 per cent range, as well as to improve operating margin by an additional 50 basis points relative to 2016 levels. Combined with the strength of our balance sheet and our commitment to capital return, that means there is significant potential at IPG for further value creation and enhanced shareholder value,” Mr Roth added.