NEW YORK: Interpublic Group (IPG) posted impressive results in the second quarter with quarterly revenue of $1.65 billion, a 7.8% increase from Q2 2006.
Total first-half revenue was $3.01 billion, up 5.3% from $2.86 billion in the same period last year.
For Constituency Management Group (CMG), the IPG division that houses its large PR agencies, revenue rose almost 15% in Q2, to $273.3 million. For the first half, CMG revenue was up almost 10% from the previous year, to $501.2 million.
Profits at the holding company also showed strong growth. Net income rose more than 50% compared to the second quarter of 2006, to $137 million.
In a conference call, IPG CEO Michael Roth said growth was strong "across all the marketing disciplines." IPG doesn't break out results for individual firms.
Roth said that IPG is still aiming for its "aggressive target" of double-digit margins in 2008.
Alluding to IPG's recent rocky history of widespread accounting problems and investor doubts, he noted that the results are "a testament to the real potential of IPG" as a competitive force, and a rebuke to those who would "draw unduly negative conclusions about our prospects."
IPG's PR agencies include Weber Shandwick, GolinHarris, DeVries, and MWW Group.