Interpublic today reported Q1 net revenues rose 2.8 percent to $2B and net income hit $91.7M compared to a year ago $4.7M profit.
CEO Philippe Krakowsky said Interpublic’s “strong start to the year reflects the quality of our talent, across the organization, and underscores the successful evolution of our offerings at a time of accelerating transformational change.”
Addressing the pandemic, Krakowsky said ensuring the health and well-being of staffers remains a top priority. “This includes a focus on equity and inclusion, as well as a long-term commitment across the ESG spectrum, including responsible data stewardship, digital media and brand safety practices,” he said.
Interpublic reported a 2.1 percent drop to $1.4B in salaries and related expenses during the quarter due to cuts in base pay, benefits, tax and severance expenses connected to the impact of the COVID-19 crisis.
Office and other direct expenses plummeted 22.6 percent to $292.9M driven by lower travel & entertainment, bad debt, new business and promotional outlays.
Looking ahead, Krakowsky expects with a “reasonably steady course of global economic recovery,” and says Interpublic can achieve full-year organic growth in the five to six percent range.
Interpublic's DXTRA marketing collective of 27 brands posted a 4.6 percent drop in reported revenues to $293.6M as the pandemic took a toll on its sports, entertainment and live event offerings.
CEO Andy Polansky said DXTRA's PR component (Weber Shandwick, Golin, ReviveHealth, Current Global, DeVries Global, Powell Tate and Rogers & Cowan PMK), posted low-single digit growth on a reported basis. That marked a rebound from Q4 when PR revenues slipped in the mid-single digit range.
Healthcare, public affairs and consumer goods sectors enjoyed upbeat performances in Q1, as well did business in North America and Europe, according to Polansky.
Weber Shandwick, ReviveHealth, United Minds, and Golin (Monogram Orthopedics and Sierra Nevada Brewing) reported strong results.