Interpublic Gets 2Q Raves, Growth Rises 14%

by , Jul 29, 2010, 3:58 PM
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Interpublic posted strong organic growth in the second quarter in the U.S., enough to give CEO Michael Roth confidence that green shots will prompt advertisers to continue to invest, at least for now.

Organic growth climbed nearly 14%, compared to 3% for the previous quarter. Roth cited event marketing and the Mediabrands unit among the growth contributors.

"Clearly [it] shows that the signs of an economic recovery are giving clients greater opportunities to engage in marketing spend," he said on an earnings call.

In the April-June period, as U.S. organic revenue was up 13.6%, total domestic revenue increased at about the same rate to $961 million. Overall, global profit soared to $105.3 million versus $20.9 million in the same period a year ago.

Roth said client CEOs are concerned about a double-dip recession, but IPG's current numbers don't indicate one is taking hold. "And when you look at our clients' cash positions overall, they certainly will have the money to spend in marketing dollars," he said, perhaps to gain share in the event of another downturn.

In midday trading, IPG shares were up nearly 10% to the $9 range.

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