IPG Posts Better Than Expected Results for Q1 – APAC Organic Net Revenue Grows 9.2%

While the Asia-Pacific saw organic net revenue grow by 9.2%, and the U.S. by 12.2%, Latin America saw an impressive 21.5% rise.

The Interpublic Group of Companies, IPG, reported better-than-expected first-quarter 2022 results with net revenues of $2.23 billion beating the consensus estimate by 3.3%. Total revenues for the company were $2.57 billion – an increase of 13.8% year over year.

Highlights

  • Reported net revenue of $2.23 billion, an increase of 9.8% from a year ago, with organic net revenue growth of 11.5%
  • Net income was $159.4 million as reported
  • Adjusted EBITA before restructuring charges was $273.6 million with 12.3% margin on net revenue
  • Diluted EPS was $0.40 as reported and was $0.47 as adjusted
  • Management highlights strong start to the year and updates expectations for full-year growth

First-quarter 2022 net revenue of $2.23 billion increased by 9.8% compared to $2.03 billion in the first quarter of 2021. During the quarter, the company’s organic net revenue increase was 11.5%, which was comprised of an organic net revenue increase of 12.2% in the U.S. and an increase of 10.2% internationally.

Total revenue, which includes billable expenses, of $2.57 billion, increased by 13.8% compared to $2.26 billion in 2021.

 
 

IPG saw its growth increase across regions. The U.S. accounted for 66% of net revenue in the quarter, with an organic net revenue increase of 12.2%, while international markets grew 10.2% organically, with the U.K. at 1.5% and APAC at 9.2%.

“We’re pleased to report a strong start to the year,” CEO Philippe Krakowsky said in the earnings call, adding that the Asia Pacific “grew 9.2% organically, driven by growth across our largest markets of Australia, India, and Japan, while Singapore was flat and China decreased.”


 
 

“Our global growth was also highlighted by consistent increases across client sectors,” said Krakowsky. “We were paced by double-digit percentage increases in our other sector of leisure, government, and industrial clients as well as double-digit growth in the retail, tech and telecom, financial services, health care, and auto and transportation sectors.”

Krakowsky said “organic growth in LatAm was 21.5%, with strong results across all disciplines.”

IPG raised its FY22 organic revenue growth outlook to 6% from the previous 5%, while reiterating its expectation of an adjusted EBITA margin of 16.6%.

The Staff

The Staff

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