Interpublic CMG revenue up 7.8 per cent

Interpublic, the marketing services group behind Weber Shandwick and GolinHarris, has reported 7.8 per cent organic revenue growth for its Constituency Management Group (CMG), which houses its PR agencies.

Higher spending from clients: Weber Shandwick global CEO Andy Polansky
Higher spending from clients: Weber Shandwick global CEO Andy Polansky

The unit, which also includes DeVries, recorded $1.3bn (£776m) in revenues for 2013. US agency Carmichael Lynch Spong operates outside of CMG.

In the final quarter of 2013 the unit reported organic revenue growth of 11.7 per cent to $374.8m (£224m).

Weber Shandwick global CEO Andy Polansky said IPG's PR agencies in CMG saw "double-digit growth in the quarter and high single-digit growth for the year" adding that they "continue to outperform the sector".

"We're seeing higher spending from existing clients," he said about his agency, noting that social and digital are key factors in the firm's growth, as well as its Mediaco content-creation and distribution unit. Polansky also cited a "very strong year in public affairs in 2013".

Weber's Q4 business was bolstered by recent business wins from Chobani, Getty Images and TripAdvisor in the US, and Burger King in the UK and Ireland.

Overall, Interpublic reported full-year revenue of $7.1 billion, up 2.8 per cent organically compared with the prior year. Fourth-quarter overall revenue was $2.12 billion, an organic increase of 3.7 per cent compared with Q4 2012.

Fourth-quarter 2013 operating income was $324.4 million, down 20.9 per cent from the year prior. For 2013, operating income was $598.3 million, a decrease of 11.8 per cent compared with 2012.

Net income in the fourth quarter was $212.1 million, down 37.1 per cent from the year prior, while full-year net income was down 37.8 per cent to $288.9 million.

Broken down by geography, US growth outpaced that of international markets. In the fourth quarter, US revenue grew 6.9 per cent organically compared with 0.5 per cent internationally, while US organic revenue growth was up 3.7 per cent in full-year 2013 versus 1.7 per cent internationally.  

Earlier this week, Omnicom Group reported a 3.7 per cent drop in fourth-quarter PR revenue and a 1.5 per cent increase for full-year 2013. Publicis Groupe, which does not break out PR revenue, said it saw 0.7 per cent growth in Q4 revenue and a 2.6 per cent organic revenue growth rate for the full year.

Organic growth represents change in revenue without taking into account the effect of acquisitions or disposals.

This story was first published on PRWeek US.

Would you like to post a comment?

Please Sign in or register.

News by email...