Interpublic CMG Q4 earnings rise 11%

NEW YORK: Interpublic Group's Constituency Management Group (CMG) unit, which includes its PR firms, reported a fourth-quarter organic revenue increase of 11% to $321.1 million.

NEW YORK: Interpublic Group's Constituency Management Group (CMG) unit, which includes its PR firms, reported a fourth-quarter organic revenue increase of 11% to $321.1 million.

For the full year, CMG posted total revenue of $1.1 billion, increasing 9.8% organically.

Harris Diamond, CEO of CMG and Weber Shandwick, said that the division's Q4 growth was “far higher than what we expected.” Its biggest driver was organic growth with existing clients, he said.

“New business is always the lifeboat of the industry, but it's really organic growth with clients that's making the most difference,” he said, emphasizing the agency's work in digital and social media. “So much of our business has become content creation, and that has been added to our traditional role of working with journalists and editors and the ability to reach stakeholders through so many different channels.”

Overall, IPG reported a 2.8% organic increase in Q4 revenue to $2.07 billion, compared with the prior year. Revenue increased 6.1% organically to $7.01 billion for the full year, compared with 2010. IPG reported net income of $278.3 million in Q4, up nearly 25% from the prior year. Net income for the full year was $551.5 million, growing 96.1% year-over-year.

“Public relations, branding, experiential marketing disciplines, as well as our specialty digital agencies, all had strong quarters,” said Frank Mergenthaler, EVP and CFO of IPG, on an earnings call.

He added that leading client sectors were auto and transportation, food and beverage, and retail.

CMG includes agencies such as Weber Shandwick, GolinHarris, and DeVries, as well as events firms and experiential marketing companies.

Last November, Weber was named AOR by Radioshack and agricultural company Cargill.

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