IPG’s Net Income More Than Tripled in the First Half

Q2 revenue growth helps drive results

Interpublic Group's net income more than tripled in the first half of the year, thanks to solid revenue and earnings growth in the second quarter.

Second-quarter net income grew 24 percent to $99.4 million, from $79.9 million in the same period last year. Revenue for the quarter grew 5 percent to $1.85 billion.

The company closed the first half with net income of $78.5 million—a jump up from $20.7 million a year ago. First-half revenue grew nearly 6 percent to $3.48 billion.

Interpublic CEO Michael Roth attributed the gains to the competitiveness of IPG's agencies. He added that the company is now positioned to exceed its full-year goals of 3 percent to 4 percent organic revenue growth and an operating margin of at least 10.3 percent.

On an organic basis, revenue grew 5 percent for the quarter and nearly 6 percent for the first half. International organic revenue growth outstripped that in the U.S.

In Q1, for example, the organic growth internationally was 7 percent compared to 3 percent in the U.S. Similarly, in the first half, organic revenue grew 8 percent internationally and only half as much domestically.

The rosy results were a sharp turnaround from the first quarter when IPG had a loss of nearly $21 million, despite revenue growth of 6 percent.

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