Interpublic, Publicis report Q2, first half revenue gains
Advertising holding companies Interpublic Group and Publicis Groupe both reported second-quarter and first-half 2010 year-over-year revenue increases July 29.
Interpublic, which has Draftfcb, R/GA and the Martin Agency on its roster, reported second-quarter revenues of $1.62 billion, a 9.7% total increase from 2009's Q2. Organic revenue growth for the quarter, representing revenue but excluding the impact of acquisitions and disposals, was 8.5%.
The holding company's second-quarter US revenue was $961 million, up 13.4% from last year and up 13.6% organically. IPG's net income for the quarter was $83.1 million, an improvement from last year's $31.4 million.
Interpublic also reported global revenues of nearly $3 billion ($2.96 billion) for the first half of 2010, a 5.7% increase over the first six months of 2009. IPG's US revenue for the first six months of 2010 jumped 8.3% year over year to $1.76 billion. Net income at the holding company was $12.8 million for the first half, an improvement over last 2009's net loss of more than $42 million.
For the holding company's Integrated Agency Networks division, which contains its domestic integrated agencies, revenues increased 10.2% in total for the quarter to $1.38 billion year over year. Organically, revenues jumped 8.8%. For the first half of 2010, revenues increased 5.6% year over year at IAN, with an organic increase of 2.9%.
Frank Mergenthaler, Interpublic's CFO, said on an earnings call that Q2 was “our strongest quarter in many years, though admittedly against a forgiving comp.”
Michael Roth, CEO of IPG, said on the call that the quarter saw “exceptional showings from our media and digital agencies, our PR firms as well as Draftfcb,” adding that “the performance of Draftfcb also continues to be a standout.”
“The organic revenue increase of 13.6% in the US clearly shows that the signs of an economic recovery are giving clients greater confidence to engage in marketing spend,” Roth said on the conference call.
Meanwhile, Paris-based Publicis Groupe reported second-quarter revenue of about $1.8 billion, representing organic growth of 7.1% year over year. The holding company's revenue for the first half of 2010 was $3.32 billion, an organic increase of 5.3% year over year.
Net income for the first half of 2010 was $278 million, a 27.5% increase over the same period in 2009.
Maurice Levy, CEO of Publicis, said in a statement that the growth is partially a result of the holding company turning its attention to digital services.
“We were quick to take the digital route, gaining a decisive lead over our competitors and providing clients with the best and most innovative solutions for the new landscape being shaped by the explosion of digital technology,” he said on an earnings call.