Interpublic PR firms report high-single-digit Q3 revenue growth

Interpublic's Constituency Management Group achieved 9.9% organic revenue growth in the third quarter, compared with the year prior. Its PR firms saw organic growth in the high single digits, according to Weber Shandwick CEO Andy Polansky.

Interpublic Groupe CEO Michael Roth
Interpublic Groupe CEO Michael Roth

NEW YORK: Interpublic Group's Constituency Management Group, which contains the majority of its PR firms, reported a 9.9% organic increase in revenue in the third quarter to $376.5 million, compared with the year prior.

In the first nine months of the year, the CMG unit’s revenue was up 7.9% organically to $1.05 billion, compared with the same period in 2013.

The holding company owns and operates Weber Shandwick, Golin, DeVries, and other PR agencies.

IPG’s PR agencies achieved double-digit growth in the second quarter overall and "organic growth was in the high single digits," said Weber Shandwick CEO Andy Polansky.

He added that Weber was up across regions, saying it had "robust performances" in China, Brazil, and a number of US markets, including New York, Chicago, and Washington, DC.

The firm is seeing about two-thirds of its growth from existing clients, many of which are gravitating toward the firm’s Mediaco content-creation and distribution unit. Digital and social are also responsible for a large percentage of Weber’s growth, said Polansky.

Overall, Interpublic posted $1.84 billion in revenue in the third quarter, up 6.3% organically compared with Q3 2013, driven by a 7.9% organic jump in US revenue. International revenue grew 4.2% organically during the period.

In the first three quarters of the year, the holding company achieved revenue of $5.33 billion, up 5.9% organically compared with the year prior. International growth slightly outpaced that of the US during the nine-month period, up 6.7% organically compared with 5.2% US growth.

Operating income in Q3 was $171.3 million, an increase of 21.1%, while its operating margin was 9.3%. Net income in the quarter was $89.7 million, up from $45.4 million in the year prior.

IPG’s operating income for the first nine months was $355.4 million, up 30%, while operating margin came in at 6.7%. Net income for the three-month period was $168.2 million, up from $66.1 million last year.

This story was updated on October 22 with quotes from Polansky and more information about PR performance.

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