Interpublic CMG revenue dips 0.9% in Q4

The group with most of Interpublic's PR firms experienced a rare revenue decline in the fourth quarter.

Inerpublic CEO Michael Roth
Inerpublic CEO Michael Roth

NEW YORK: The Interpublic Group unit containing most of its PR firms saw a 0.9% drop in organic revenue in the fourth quarter of last year to $398.9 million, compared with a Q4 2015 in which its revenue was up by 6.5%.

Constituency Management Group, which contains firms including Weber Shandwick and Golin, achieved an organic revenue increase of 3.6% for the full year to $1.5 billion.

The unit also contains specialty marketing firms such as Jack Morton, Octagon, and FutureBrand.

The holding company as a whole reported organic revenue increases of 5% or more for both Q4 and all of 2016. In the final quarter of the year, its revenue increased 5.3% over the year prior to nearly $2.3 billion. Full-year revenue improved by 5% organically to $7.8 billion.

The holding company reported $336.9 million in net income in Q4 and $485.1 million in operating income, both improvements over Q4 2015. Interpublic easily beat analysts’ expectations for the quarter.

The holding company's revenue growth in the U.S. for Q4 lagged behind several other regions at 3.3%. Organic revenue growth in the fourth quarter was 11.7% in the U.K., 11.1% in continental Europe, 7.5% in Asia-Pacific, and 5% in Latin America. All other markets experienced Q4 revenue growth of 0.9%.

For the full year, U.S. organic revenue growth was 4.4%, a slower rate than the U.K. (8.5%), continental Europe (5.7%), and Latin America (12.2%). Asia-Pacific experienced 1.2% organic growth in 2016, and all other regions saw 4.8% growth.

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

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