Big Markets Drive Profit Growth at IPG

Agencies in the U.S., U.K. and Asia-Pacific outperform peers

IPG CEO Michael Roth is raising his target for organic growth in 2015.

Net income at Interpublic Group grew significantly in both the second quarter and first half of the year, amid modest revenue growth.

Revenue rose 1 percent in the quarter and about 2 percent in the first half, to $1.87 billion and $3.55 billion, respectively, according to Interpublic. Organic revenue growth was more impressive, at nearly 7 percent for the quarter and 6 percent for the first six months.

Second-quarter net income totaled $121.2 million, up from $99.4 million in the same period last year. For the first half, net income jumped from $78.5 million in 2014 to $119.4 million this year.

In a statement, IPG CEO Michael Roth attributed the gains to the digital marketing capabilities of his agencies, "very good growth" in the U.S., U.K. and Asia-Pacific region and cost discipline.

"At the midway point of the year, we believe that the appropriate organic growth target for 2015 is now 4 to 5 percent," Roth said. Previously, the CEO had projected 3-4 percent organic growth.

"Consistent with that, we will look to deliver toward the upper end of our full-year operating margin target of 80-100 basis points improvement," Roth added.

The revenue results in Q2 were similar to those in Q1, when revenue grew 2 percent and 6 percent organically. In that quarter, however, IPG reported a loss of $1.8 million.

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