In its results for Q1 2022, Interpublic Group (IPG) has posted a revenue growth of 9.8% year on year, to US$2.23 billion (A$3.14 billion).
This was compared to a smaller 2.4% growth in Q1 2021, which correlated to a revenue of US$2.03 billion (AU$2.86 billion).
Net income was reported as US$159.4 million (A$224.6 million), adjusted EBITA before restructuring costs was US$273.6 million (A$385.5 million) with a margin of 12.3% on net revenue.
Regionally, Asia-Pacific also posted solid growth, with an organic increase of 9.2% to US$174.6 million (A$246 million).
Fourth quarter US organic growth was 12.2% and international was 10.2%, making for an organic net revenue increase of 11.5%.
The financial presentation said that the group was ‘pleased’ with their ‘strong start to the year and tone of business’.
On the results, IPG CEO Philippe Krakowsky said:
“We are pleased to report a strong start to our year, with growth highlighted by increases across a broad range of geographies and client sectors. These results reflect the skill that our colleagues bring to their craft and the commitment they consistently demonstrate to our clients and in support of each other. A differentiator of our performance, in the quarter and over a period of many years, remains our ability to deliver marketing and media solutions that bring together award-winning creativity with best-in-class technology and data infrastructure. This combination is responsive to the evolving needs of modern marketers for more digital, precise, and data-informed thinking, as well as the kind of integrated programs that allow IPG to deliver higher-order business solutions.
“While macro uncertainty is still elevated as a result of geopolitical and public health issues, we recently refreshed our bottom-up outlook for the year with key clients and with our operating teams, and the tone of the business remains positive. As such, we are updating our outlook for the year, from the previously-announced expectation for 5% organic revenue growth in 2022 to approximately 6%, on this key metric. This would be an especially strong result, given that it compounds IPG’s outstanding multi-year growth stack. We are also re-iterating our expectation for adjusted EBITA margin of 16.6% for the full year.
“We will continue to stay close to and support our people and our clients, remain disciplined in managing our operations, and maintain the strength of our balance sheet. Given our great talent, a highly relevant strategy and portfolio of offerings, and our strong commitment to client partners, we are well-positioned to enhance opportunity and value for the full range of our stakeholders.”
In Australia IPG owns agencies such as UM, Initiative and Magna.