NEW YORK: Interpublic Group's Constituency Management Group, which contains its PR agencies, reported organic revenue growth of 11.7% in the final quarter of 2013 to $374.8 million.
The unit, which includes PR firms Weber Shandwick, GolinHarris, and DeVries, among others, saw 7.8% organic revenue growth for full-year 2013 to $1.3 billion. Carmichael Lynch Spong operates outside of CMG.
Weber CEO Andy Polansky said IPG's PR agencies in CMG saw “double-digit growth in the quarter and high single-digit growth for the year” adding that they “continue to outperform the sector.”
“We're seeing higher spending from existing clients,” he said about his agency, noting that social and digital are key factors in the firm's growth, as well as its Mediaco content-creation and distribution unit. Polansky also cited a “very strong year in public affairs in 2013.”
Overall, the holding company reported full-year revenue of $7.1 billion, up 2.8% organically compared with the prior year. Fourth-quarter overall revenue was $2.12 billion, an organic increase of 3.7% compared with Q4 2012.
Fourth-quarter 2013 operating income was $324.4 million, down 20.9% from the year prior. For 2013, operating income was $598.3 million, a decrease of 11.8% compared with 2012.
Net income in the fourth quarter was $212.1 million, down 37.1% from the year prior, while full-year net income was down 37.8% to $288.9 million.
Broken down by geography, US growth outpaced that of international markets. In the fourth quarter, US revenue grew 6.9% organically compared with 0.5% internationally, while US organic revenue growth was up 3.7% in full-year 2013 versus 1.7% internationally.
Earlier this week, Omnicom Group reported a 3.7% drop in fourth-quarter PR revenue and a 1.5% increase for full-year 2013. Publicis Groupe, which does not break out PR revenue, said it saw 0.7% growth in Q4 revenue and a 2.6% organic revenue growth rate for the full year.
Organic growth represents change in revenue without taking into account the effect of acquisitions or disposals.