Interpublic's CMG down 2.2% in Q2

The holding company as a whole reported an organic revenue increase of 0.4% in the period and year-over-year drops in net and operating income.

IPG CEO Michael Roth
IPG CEO Michael Roth

NEW YORK: Interpublic Group’s Constituency Management Group, the unit that contains PR firms including Weber Shandwick and Golin as well as specialist marketing shops such as Jack Morton, reported a 2.2% organic revenue drop in the second quarter. The division earned $347.1 million in the three-month period that ended on June 30.

The holding company’s Integrated Agency Networks division, containing most of its creative networks, saw an organic revenue increase of 1% in the period to $1.5 billion.

The holding company as a whole reported a 0.4% increase in organic growth in the period to $1.9 billion; net income was down 40.9% to $94.6 million and operating income dropped by 7.9% year-over-year to $206.5 million.

The holding company’s organic revenue was flat across developed markets in Q2. The U.S. (0.7%) and U.K. (1.9%) both saw increases of less than 2%. Continental Europe dropped 2.5%, and Asia-Pacific decreased 1.1%. Latin America was flat with 0% organic growth, while all other markets increased 3.2%.

Interpublic Group holds most of its PR firms, such as Weber Shandwick and Golin, within Constituency Management Group, alongside specialist marketing firms such as Octagon and Jack Morton. Carmichael Lynch Relate sits outside of the CMG unit.

For the first six months of the year, CMG reported organic revenue growth of 1% to $693.4 million, while IAN registered a 1.6% organic increase to $2.9 billion. Interpublic as a whole saw 1.5% organic revenue growth in the first half to $3.7 billion. Net income was down 28.7% to $112.7 million, and operating income decreased 4.5% to $236.2 million.

Broken down by geography, the U.S. (1.7%), U.K. (1%), Continental Europe (1.7%), and Latin America (1.6%) all saw organic growth of less than 2% in the first half of the year. The Asia-Pacific region reported a 1.9% drop in organic revenue in the first six months of 2017, while all other markets were up 5.2%.

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