IPG revenue, income up for Q4, full year 2010
Holding company Interpublic Group reported revenue of $6.5 billion for full-year 2010, a 7% organic growth increase compared with 2009. Net income for 2010 grew by 96.1% compared with the previous year to $281.2 million.
Fourth-quarter revenue increased organically by 11.2% to $2 billion, compared with Q4 2009. Net income in the fourth quarter was $222.8 million, an increase of 39.5% compared with the prior Q4.
IPG's Integrated Agency Network segment, which includes domestic agencies McCann Worldgroup, Draftfcb, Lowe & Partners and Mediabrands, reported a 6.5% year-over-year organic increase in full-year revenue to $5.52 billion. In the fourth quarter, revenue for the segment was up 10.1% organically to $1.72 billion.
IPG's marketing services contributed 42% of the holding company's total revenue last year.
“At the agency level, we had strong organic growth at all of our global networks. Marketing services performed very well, and our digital offerings and integrated US independence continue to make significant contributions with outstanding performance during this quarter,” said Michael Roth, IPG's chairman and CEO. “This growth reflects the improved economic climate and growing confidence on the part of the marketers compared to a year ago.”
He added that “4% to 5% organic growth is a reasonable outlook for the full-year 2011.” Organic revenue growth represents change in revenue without measuring the impact of acquisitions or disposals.
Roth also discussed three reviews IPG agencies are participating in. He said the holding company feels it is “in good position” to retain the US Army as a client with two IPG agencies, incumbent McCann and Draftfcb, participating along with two other finalists.
Roth was also positive about Microsoft's agency review. “We entered into that review with the client indicating how satisfied they are with our performance, and we continue to show and build upon that,” he said.
Roth also said four IPG agencies, Draftfcb, R/GA, Initiative and Mullen, are participating in SC Johnson's global review. He said IPG has a “strong relationship with SCJ” and “we're working very hard to make sure that we continue that into the future.”