IPG revenue up, net income boosted by Facebook sale
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%.
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.