Interpublic, parent of agency networks Draftfcb, McCann Erickson and Lowe Worldwide, has posted third quarter revenue growth of 11.5% to $1.74bn (£1.1bn) but chief executive Michael Roth (pictured) warns of a “volatile business environment”.
Net income for the third quarter was $45.7m (£29.1m) compared to a net loss of $21.9m (£13.9m) for the same period last year. The company saw organic revenue rise 7.6% compared to the third quarter in 2007.
For the year to date, organic revenue rose 6.4% on the same period last year and net income is $78m (£49.6m), bringing the company out of the red – Interpublic posted a net loss of $10.8m (£6.87m) for first three quarters of 2007.
Roth says: “Our rate of organic growth shows that IPG’s agencies are increasingly competitive in the market. All of our major operating units are showing improvement in their performance so far this year.
“However, the global financial situation has begun to weigh on marketers’ spending plans for both the fourth quarter and 2009.”
Roth adds that it is unclear what impact the “volatile business environment” will have on the marketing sector but there is “a risk” to meeting stated
The company’s domestic organic growth was achieved by expanding business with existing clients and winning new media and events clients, while international revenue was driven by net client wins and increased spending, mainly in the UK and Continental Europe.