10% Q2 Revenue Spike for IPG

Interpublic Group today reported a fourfold spike in second-quarter net income to more than $105 million on revenue growth of nearly 10 percent to $1.61 billion, compared to the same period a year ago.
In organic terms, excluding fluctuations in currencies and the impact of acquisitions, revenue growth was 8.5 percent for Q2, compared to the same frame in 2009.
The improved quarterly results helped the holding company tally net income of $33.8 million for the first half. In the same period last year, IPG recorded a $53 million loss. First-half revenue grew 6 percent to $2.9 billion.
IPG CEO Michael Roth (pictured) described the Q2 performance as strong and broad based, with organic growth coming across multiple regions and different agency types.
“Of course, there remain areas of uncertainty in the global economy, so we will continue to manage the business conservatively,” Roth said. “With revenue stability and growth back in the picture, we feel we are very much on track to deliver on our operating margin objective of better than 8 percent for 2010.”
IPG’s performance jibes with its peers. Both Omnicom and Publicis have recently reported improved financials after suffering rough stretches during the recession. WPP Group is scheduled to discuss its interim results for the first half on Aug. 24.
Roth, during an hour-long conference call with industry analysts after IPG revealed its numbers, said that the second-quarter results “provided additional indications that we have come through the worst of the impact of the economic crisis. We now expect to see positive organic growth for the year.”
Of course, IPG had low hurdles to clear in Q2, given the relatively weak performance of the company — and ad sector in general — during the same period last year. Or, as Roth plainly put it, “The severity of the downturn last year means we had benefit of favorable [comparable numbers] this quarter.”