NEW YORK, LONDON: Holding companies Interpublic Group (IPG) and WPP Group both posted healthy earnings growth in 2007.
IPG, which owns PR agencies Weber Shandwick, GolinHarris, and MWW Group, among others, reported that yearly revenue grew almost 6%, to $6.6 billion.
"PR is one of the stronger performing segments in the business," said Harris Diamond, CEO of WS. "Frankly, it's the best growth we've had in several years, and it's widespread."
Quarterly profit was three times higher than the same period a year ago. The company reported net quarterly income of $162.7 million. Quarterly revenue rose 5.6% to $1.98 billion.
WPP Group announced revenue of approximately $12.4 billion, up 13.6% from 2006. Operating profit totaled approximately $1.6 billion, up 8.5%.
PR and public affairs created 10.5% of total revenue, with like-for-like growth at 8.2%.
WPP chairman Sir Martin Sorrell said in a conference call that he did not expect uncertainty in the US economy to significantly affect overall business.
"We're expecting that 2008 will be a better year because of the football championships, the Olympics, and the presidential election," Sorrell said.