Interpublic’s fortunes turned around by strong second quarter
Interpublic Group, the parent company of McCann Erickson and Lowe Worldwide, has posted profits of £113m for the second quarter of 2010.
The strong second quarter performance turned around a poor performance in the first quarter, meaning Interpublic made a profit for the first half of the year.
Second quarter profits are up 83% from the year ago profits of £61.9m, after an 8.5% organic revenue growth.
As a result, Interpublic Group posted a profit of £75.3m in the first half of the year, up from £9.56m from the year ago period.
Interpublic CEO Michael Roth says that despite the improved performance the company will “continue to manage the business conservatively”. He puts the recovery down to an improvement in business across all areas of the group.
“Contributions to our organic revenue growth came from existing and new clients across a range of industry sectors, from the US and emerging international markets and from a broad cross-section of the agencies in our portfolio,” says Roth. “We are proving that we have the talent and the tools to benefit from a macro recovery and the ability to convert revenue growth into bottom line results.”
The improving organic growth helped the group achieve a small jump in revenue. The group posted revenue of £1.89bn in the first half of 2010, compared to revenues of £1.79bn from the year ago period.
Interpublic’s results come amid news that the Publicis Groupe posted a profit of £178m in the first half of the year.
This story first appeared on pitch
