Interpublic Group of Companies reported better than expected March quarter results and forecast full year 2021 organic growth of 5% to 6%.
First quarter organic net revenue growth was 1.9%, lifted by a solid performance in the US.
Net revenue was $2.03 billion, up 2.8% from a year ago.
The company is focused on navigating the impact of COVID-19 and says it is well-positioned to participate in the global economic recovery.
And IPG is highly confident that it can realise the full level of permanent operating expense savings, annualised at $US160 million.
Asia Pac grew 3.4% organically in the three months to March. IPG reported “strong gains” in Australia and Singapore. China and India's revenue declined.
CEO Philippe Krakowsky described the results as a strong start to the year, reflecting the quality of talent across the organisation, and underscoring the successful evolution of offerings at a time of accelerating, transformational change.
“Our first quarter is seasonally our smallest, and most of the year still remains ahead of us,” he says.
“We also appreciate the heightened degree of business uncertainty as part of the current reality facing all companies, to a business like ours translates into more challenging visibility to the full year.
“As a result, we're staying very close to our people and our clients. asking our teams for frequent financial updates and continuing to carefully manage expenses.
“To date, we're seeing cautious optimism from clients, and the tone of business has firmed in the last few months. Reopenings, fiscal stimulus and vaccination programs in a number of our largest markets of providing a tangible lift to economic activity and marketing demand.
All the numbers for the March quarter 2021:
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