Net revenue at global advertising group Interpublic Group (IPG) surged 22.5% to $US2.27 billion in the June quarter with organic growth passing pre-pandemic levels.
Organic growth was almost 20% in the three months compared to the same quarter last year when the company recorded a negative 9.9% during the depths of the economic fallout from the pandemic. Compared to the June quarter in 2019, organic growth was 7.9% higher.
CEO Philippe Krakowsky: “These results represent a remarkable rebound from the impact of the pandemic on our business, demonstrating the resilience of our people, as well as their commitment to each other, our clients, and our craft.”
Krakowsky upgraded the company’s outlook for the full year to organic growth 9% to 10%.
However, he also recognised that “the COVID pandemic continues to pose a risk to the macro environment in many parts of the world”.
On the New York Stock Exchange, shares in IPG rose more than 11% to close at $34.81.
IPG's results follow another global advertising group, Omnicom, which this week reported better than expected revenue for the June quarter, with organic growth at 24.4%.
Krakowsky at IPG: “Our results this quarter compare favourably not only to the same period last year – which while the steepest decrease of the recession was well ahead of our peer group – but also Q2 of 2019, which underscores the continued evolution and vitality of our offerings.
“Strategic decisions we have taken over a number of years to combine our world-class creative storytelling capabilities with our ability to deliver addressable and accountable data-powered marketing programs position us well for the future.
“Ultimately, our growth speaks to our role as a high value partner that helps marketers to drive sustained business results.
“As we emerge from the pandemic, we continue to focus on the health and well-being of our people.
“This includes a focus on equity and inclusion, as well as a long-term commitment across the ESG spectrum, including climate change, responsible data stewardship, digital media and brand safety practices."
In Asia-Pacific, organic growth was 14% organically. The results: "Our organic growth was paced by Australia, the Philippines, Singapore, Thailand and India, while China and Japan decreased."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at email@example.com