NEW YORK: The Constituency Management Group (CMG) division of The Interpublic Group (IPG), which contains the holding company's PR agencies, reported revenues of nearly $290 million for the third quarter, an organic increase of 18.3% from the same period last year.
For the first nine months of 2008, which ended September 30, the division reported more than $831 million in revenues, an organic increase of more than 11% over its 2007 figures. Organic growth represents expansion without takeovers, acquisitions, or mergers.
IPG did not disclose third-quarter earnings for its individual PR companies or overall PR business. However, IPG's collective PR business, which includes agencies Weber Shandwick, GolinHarris, MWW Group, DeVries, and Carmichael Lynch Spong, saw organic Q3 and year-to-date growth of approximately 8%, according to Harris Diamond, CEO of WS and CMG.
“I think it's fair to say that the PR business has had a terrific nine months and a terrific third quarter,” he said, adding that demand is strong in CMG's consumer, corporate communications, and technology practices. “Having said that, you have the caveat that we are walking into uncertain times.”
Overall, IPG reported global third-quarter revenue of $1.74 billion, an organic revenue increase of 7.6% over the $1.56 billion collected during the same period last year. For the first nine months of 2008, the holding company saw revenue of $5.06 billion, an organic revenue increase of 6.4% from the $4.5 billion reported in 2007.
The holding company also reported third-quarter net income of $45.7 million, compared to a net loss in 2007 of $21.9 million. IPG's year-to-date net income for 2008 was $78 million. During the same period in 2007, the holding company had a net loss of $10.8 million.