Interpublic Group’s third-quarter net revenue increased 15.7% to $2.26 billion, the company reported today before the financial markets opened. Organic revenue growth (which excludes currency and M&A activity) for the period was 15%. Organic growth was 10.7% compared to the third quarter of 2019, before the pandemic started.
Net revenue for the first nine months of 2021 increased 13.5% to $6.56 billion with organic growth of 12%.
On an earnings call, Philippe Krakowsky, CEO of IPG, projected organic growth of 11% for the full year. That’s an uptick above previously stated guidance of 9% to 10%.
Krakowsky said based on expectations of a reasonably steady course of improvement in the public health situation and attendant economic recovery, “With growth at that level, we expect to achieve adjusted EBITA margin of approximately 16.8 percent.”
“Growth reflects the cyclical economic recovery,” Krakowsky said, “as well as the important structural currents that favor the kinds of higher order expertise with which we’re well resourced.”
Third-quarter organic growth in the U.S. was 14.7 percent, slightly lower than IPG’s rate of 15.4 percent internationally.
“Nearly every one of our eight major client sectors is increasing at a double-digit percentage rate,” said Krakowsky, “led by the auto sector our other sector, with government and industrials, and the tech and telecom, retail and healthcare sectors.”
The results surpass expectations. Wall Street had expected 7.6% earnings decline while revenues were expected to be around $2.19 billion. The company’s stock was down 3% in mid-morning trading amid a broader falloff including most of its holding company peers.