Interpublic Group of Cos. reported 7.9% organic net revenue growth and a net revenue increase of 4.7% compared to last year, bringing the holding company’s net revenue to $2.38 billion. IPG also raised its full-year organic revenue growth expectations.
Last quarter, IPG adjusted its organic growth expectation to 6%; now it expects to exceed 6.5% organic growth for the full year.
On a call this morning, IPG CEO Philippe Krakowsky said people are facing what he called “a moment of macroeconomic and geopolitical uncertainty” and that some clients are asking for “contingency plans.”
“While we appreciate that the environment is dynamic, the demand we’re seeing for our services remains broadly strong, and we are committed to delivering on our growth expectations for the year,” Krakowsky said. “Understandably, clients are considering how best to factor a slower macroeconomic picture into their plans for the balance of the year. But that varies significantly on an industry-by-industry basis. And marketers are also giving consideration to the disadvantages of being out of market during a slow-down, especially if one doesn’t fully materialize, or is short-lived.”
The U.S., which represented 66% of net revenue in the quarter, saw organic growth of 8.3%. International markets, which were 34% of IPG’s net revenue in the quarter, saw 7.1% organically.
