Interpublic today reported a 31 percent rise in second quarter net income to $108.9M on an eight percent revenue rise to $1.7B.
Solid overseas revenue growth of 15.7 percent to $752.9M fueled the ad/PR combine’s performance.
Harris Diamond, who heads Weber Shandwick and chairs IPG’s constituency management group, told O’Dwyer’s that PR revenues advanced 9.6 percent for the quarter as clients spent to “build-out” their businesses.
He also noted that budgets for social media programs are proving to be “additive” rather than “subtractive” to traditional PR offerings at WS, GolinHarris, Rogers & Cowan and DeVries PR.
Diamond said both PR and CRM turned in “terrific” performances.
IPG CEO Michael Roth noted that stepped up investment in people trimmed profit margin from 11 percent to 10 percent this year as salaries/related expenses rose 10.6 percent to $1.1B. “Margin enhancement” is a priority for the balance of the year.
Roth noted that organic growth hit the 6.8 percent mark for the first-half. That puts IPG in line to hit its four to five percent full-year organic growth goal.