Interpublic Registers 7% Organic Growth For '10
A stronger advertising economy sharply lifted the Interpublic Group of Cos.' fourth-quarter 2010 net income. The parent company includes agency brands such as McCann Erickson, Initiative and Draftfcb. The 40% gain to $222.8 million during the period easily surpassed analysts' expectations -- and as a result, its stock price quickly rose 7.5% to $12.50 in midday trading.
Revenue grew 12% to $2.01 billion. Analysts were expecting revenue of around $1.92 billion.
Michael I. Roth, chairman and CEO of Interpublic, said: "All indications are that the economy in 2011 will continue to be positive, and we expect to deliver competitive organic revenue growth and aggressive margin expansion."
During the fourth quarter of 2010, the impact of net acquisitions -- new agency business was positive 0.5% -- resulted in an organic revenue increase of 11.2%. For the year, organic revenue growth was 7%.
Operating profit increased 23% for the fourth quarter to $330.7 million, and 61% for full year 2010 to $548.7 million.
Roth said: "Organic growth at the top end of our peer group reflects the strength of our agencies and our ability to deliver integrated and increasingly digital solutions to our clients. We saw contributions to this performance from across the portfolio, led by our companies in the U.S. and in emerging international markets."