IPG CEO Philippe Krakowsky had good news for shareholders on first-quarter returns.
He touted a strong start to the year, with Q1 organic net revenue growth at 11.5%. That figure represents both solid performance in the U.S., with organic growth of 12.2%, and globally, at 10.2%.
Drilling down, first-quarter 2022 total revenue, which includes billable expenses, hit $2.57 billion, an 13.8% increase YoY from 2021. Operating income in the first quarter of 2022 was $245.7 million, compared to $243 million in 2021.
That translates as $2.23 billion in reported net revenue for the company, a jump of 9.8% from 2021. Net income was $159.4, with adjusted EPITA before restructuring charges at $273 million.
Most telling, Krakowsky said there were upticks in every world region for the company.
In fact, despite global uncertainties in geopolitics and economics, IPG has updated its revenue target for 2022. In February, he expected approximately 5% organic growth in 2022. “At this point, we are nonetheless increasing that outlook for the year to approximately 6% organic growth. Along with our expectation for adjusted EBITA margin of 16.6%,” Krakowsky reported at Thursday morning's earnings call.
WPP and Omnicom also recently raised full-year growth outlooks, citing similar uncertainties.
Krakowsky also noted that business operations were reconfigured as three reportable segments: Media Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions and Specialized Communications & Experiential Solutions.
In the first quarter, each segment grew at a double-digit organic rate: 11.5% at MD&E, 11.2% at IA&C and 12.5% at SC&E.
New wins in the quarter were touted, as well. FCB won new assignments from Hershey’s and Kellogg’s in North America. McCann won Velocity Global, hands grow [ph] out of the UK and Club Med Canada. And MullenLowe was named as creative agency of record by KFC.
Krakowsky says the overall tone of the business remains “positive.”