CMG unit revenue up more than 9% at Interpublic

NEW YORK: Interpublic Group's Constituency Management Group unit saw organic revenue growth of 9.3% to $320.5 million in the second quarter of 2013, compared with the same period of the prior year.

NEW YORK: Interpublic Group's Constituency Management Group unit saw organic revenue growth of 9.3% to $320.5 million in the second quarter of 2013, compared with the same period of the prior year.

For the first half of the year, CMG's revenue grew 11.5% organically to $622.4 million.

The holding company owns and operates Weber Shandwick, GolinHarris, DeVries Global, and other marketing specialist agencies in its CMG division. It also manages Carmichael Lynch Spong and the Axis Agency outside of the unit.

Overall, IPG reported a 2.2% organic increase in revenue to $1.76 billion in Q2, compared with the prior year. It posted operating income of $174.8 million in the quarter, down 0.9% from $176.4 million in the same period of last year. Net income attributable to IPG was $82.8 million in the second quarter compared with $101.9 million in the previous year.

For the first half of the year, IPG's revenue was up 2.3% organically to $3.3 billion, compared with the same period of 2012. Operating income was $132.4 million during the period, down 3.4% compared with the prior year. The holding company reported $26.5 million in net income in the first half, compared with $58.9 million in the same period of the prior year.

Andy Polansky, CEO of Weber Shandwick, said IPG's PR agencies in the CMG unit saw “very strong year-over-year performance in Q2.”

“Weber Shandwick, GolinHarris, and DeVries all performed well,” he added.

Weber saw strong performance in the US, Asia, Brazil, and Canada, while business in southern Europe was slower due to the economic conditions there, Polansky explained. He attributed growth primarily to the agency's work in digital and social media, as well as in corporate reputation, healthcare, consumer, and public affairs.

A Golin representative deferred comment on the earnings to Polansky.

In Q2 2012, CMG's revenue grew 8% organically to $292.4 million, year-over-year. For the first six months of 2012, the unit reported revenue of $555.3 million, up 8.3% organically compared with the same period in 2011.

Omnicom Group and Publicis Groupe also reported second-quarter earnings this week. Omnicom's PR revenue grew 3.8% organically in the period to $336.1 million, compared with the previous year. Publicis reported 5% second-quarter organic revenue growth, year-over-year, to $2.34 billion, but did not break out the performance of its PR agencies.

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