Interpublic Group (IPG) has released its Q2 and H1 2022 results, reporting a second-quarter net revenue increase of 4.7% to $USD2.38 billion ($AUD3.44 billion).
The New York-based advertising company, which owns Australian agencies UM, Initiative and Magna, reported an organic net revenue increase of 7.9%, which was comprised of an organic net revenue increase of 8.3% in the U.S. and an increase of 7.1% internationally.
Q2 2022 total revenue (including billable expenses of $USD2.74 billion) increased by 9.0% compared to $USD2.51 billion in 2021.
Philippe Krakowsky, CEO of IPG said, “We are pleased to report a strong second quarter and first-half, in which we continued to build on our industry-leading performance over a period of many years.
“Growth in the quarter was broad-based across world regions, client sectors and our operating units.”
IPG’s 2022 first-half results showed net revenue increased by 7.1%, from $USD4.30 billion in the first half of 2021 to $USD4.60 billion in 2022. Organic net revenue increased by 9.2%, which was comprised of an organic net revenue increase of 10.2% in the U.S. and an increase of 8.6% internationally.
Krakowsky added, “A differentiator of our performance has been our ability to bring together creativity, digital technology and data to create marketing solutions that are responsive to the evolving business transformation needs of our clients.
“Our growth is largely driven by these highly relevant capabilities, with which we are solving for an expanding set of marketer needs for more precise, personalized, and accountable engagements at an individual level, with respect for data ethics and compliance.”
The results led IPG to upgrade its 2022 growth forecast from six per cent to 6.5 per cent.
“Like all companies, as we look ahead we are facing a period of macroeconomic and geopolitical uncertainty, and the limited visibility that comes with such an environment.
“In April, we upgraded our 2022 organic growth expectation to 6% and given our growth through the first half of the year, we see upside and believe we will exceed 6.5% organic growth for the full year. We continue to expect that we will deliver adjusted EBITA margin of 16.6%,” Krakowsky said.
“We will stay close to and support our people and our clients, remain disciplined in managing our operations, and maintain the strength of our balance sheet. The skill and commitment of our IPG colleagues have helped us to reach the halfway point of the year on strong footing.
“I’d like to recognize and thank our people for their work, on behalf of clients and in support of each other, as well as their engagement on vital societal issues consistent with our culture and our values,” Krakowsy concluded.