WPP, IPG report Q3 revenue increases
Holding companies Interpublic Group and WPP Group reported increased revenues in the third quarter compared to the same period of last year.
WPP reported a third-quarter year-over-year revenue increase of 9.9% to $1.3 billion for North America. Globally, it saw a 6.1% year-over-year increase in Q3 earnings to $3.49 billion.
WPP said in an earnings statement that its global direct, digital and interactive businesses at OgilvyOne Worldwide, OgilvyAction, VML and Wunderman drove growth in its branding and identity, healthcare and specialist communications group.
WPP also reported a revenue increase of 7.6% in North America for the first nine months of the year to $3.7 billion. Worldwide, revenue growth in the first nine months was 5.7%, reaching $10.3 billion.
Interpublic saw a 9.9% year-over-year US Q3 revenue increase to $916.7 million. Global revenue for Q3 increased 9.4%, year-over-year, to $1.56 billion.
The company noted there were “strong contributions” from its digital business.
Net income also increased year-over-year in the third quarter to $45.6 million, from $25.9 million the year before.
“We posted another quarter of strong revenue and profit growth,” said Michael Roth, IPG's chairman and CEO, in a statement. “Our professional offerings are fully competitive, across the full range of disciplines, including our digital capabilities.”
IPG also saw an 8.9% US year-over-year revenue increase for the first nine months of the year to $2.68 billion. Global revenue jumped 6.9% year-over-year for the first nine months of the year.
The holding company also saw net income of $58.4 million during this time, compared to a loss of $16.3 million the year before.
IPG's Integrated Agency Networks division, which includes its digital and direct marketing agencies, saw 9% year-over-year total revenue growth and 8.8% organic revenue growth for Q3 to $1.3 billion. For the first nine months of this year, it saw 6.7% total revenue growth and 4.9% organic revenue growth to $3.8 billion, compared to the same period in 2009. Organic growth excludes growth from agency acquisitions.
Elkie Griffin, corporate communications manager at Interpublic direct agency Draftfcb said that “2010 has been a standout year for the agency.”
“In the midst of the biggest financial crisis in nearly a century, we have posted 11 consecutive quarters of strong growth and repeatedly been cited as IPG's top performer,” she said.