IPG revenue up, net income boosted by Facebook sale

Share this article:

The Interpublic Group of Companies (IPG) reported revenue of $1.73 billion for the third quarter of 2011, an 11.1% growth increase compared with Q3 2010.

Net income for the third quarter of 2011 grew by 367.8% year-over-year to $273.2 million. Total third quarter operating expenses increased 6.9% to $1.6 billion for the holdings company.

IPG's Integrated Agency Network segment, which includes domestic agencies McCann Worldgroup, Draftfcb, Lowe & Partners and Mediabrands, reported an 8.3% increase in third quarter revenue to $1.4 billion. IPG's marketing services contributed 42% of the holding company's total revenue last year.

IPG sold half of its stake in Facebook for $133 million in August. Less than a month after losing the S.C. Johnson & Son global advertising account to BBDO and Ogilvy & Mather, Draftfcb Chicago reduced its staff by approximately 10%. The agency's global workforce was cut by 3%.

Also during the quarter, retailer IKEA named McCann NY its global agency of record for its catalog business. MRM Worldwide combined its Americas operation with McCann Erickson Salt Lake City.

Michael Roth, IPG's chairman and CEO, said digital was a major contributor to the company's Q3 growth.

“The digital capabilities within our integrated agencies, marketing services firms and those at our media businesses all contributed to our strong performance,” he said.

Share this article:
close

Next Article in Agency

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Publicis Launches New Digital Agency

Publicis Launches New Digital Agency

Roar, an amalgam of top digital talent from across Publicis Groupe, will be led by Zenith OptiMedia veteran Sean Reardon.

RAPP Names Orlov CEO

RAPP Names Orlov CEO

The Volkswagen marketing executive is a veteran of Wunderman and WPP.

Hawthorne Opens Mobile Unit, Names Digital Director

Hawthorne Opens Mobile Unit, Names Digital Director

Jared Lake moves over from M&C Saatchi Mobile to head the new unit.