IPG's Q2 revenues up 8.7% in group containing PR agencies

NEW YORK: The Interpublic Group (IPG) division containing the holding company's PR agencies, Constituency Management Group (CMG), saw revenues of $297 million during the second quarter - up from $273 million last year - an 8.7% increase and 7.5% organic growth from Q2 of 2007.

NEW YORK: The Interpublic Group (IPG) division containing the holding company's PR agencies, Constituency Management Group (CMG), saw revenues of $297 million during the second quarter – up from $273 million last year - accounting for 7.5% organic growth from Q2 of 2007.

The division reported more than $541 million in revenue for the first half of 2008, which ended June 30, an organic increase of 7.6% over its 2007 figures.

IPG did not disclose second-quarter earnings for its PR business or individual companies.

IPG's PR agencies including, Weber Shandwick, GolinHarris, MWW Group, DeVries, and Carmichael Lynch Spong, “all performed exceedingly well and saw growth in existing clients and new business,” said Harris Diamond, CEO of WS and CMG.

“PR continues to have a terrific six months, and we are continuing to grow our business at a rate of approximately 10% year over year, following a very strong 2007,” he said.

Overall, IPG reported global second-quarter revenue increased by more than 11% from the $1.6 billion reported during the second quarter of 2007. Overall US revenue was up 3.5% during the second quarter. However, IPG's net income for the second quarter decreased from $137 million last year to $95 million this year.

The net income drop was largely caused by a large tax benefit for IPG during the second quarter of 2007, according to Tom Cunningham, IPG VP, corporate communications.

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