IPG’s ‘evolution’ driving positive Q1 results

Mariam Cheik-Hussein
By Mariam Cheik-Hussein | 29 April 2019
 
Michael I. Roth

IPG’s ability to adapt to a "changing media landscape" is behind its positive first quarter earnings results, says chairman and CEO Michael I. Roth.

The company reported a net revenue of US$2 billion, up 13% compared to the same period last year. Organic net revenue increase was 6.4%, excluding results from Acxiom.

Net loss for the holding group was US$9.5 million, compared to $16.1 million in 2018.

While the company doesn’t provide figures for the Australian market, it’s expected to have contributed significantly to its results.

Last year, IPG-owned media agency UM Australia had a positive year, winning accounts such as the $150 million Australian government master media account, the $50 million Nestlé account and the $23 million AGL account.

Roth says it’s pleased with the strong organic growth reported in its Q1 earnings, which was driven by its performance in media, as well as growth in its global creative network, PR and digital offerings.

“While Q1 is our smallest seasonal quarter, our results continue to demonstrate the many strengths of our company and underscore the successful evolution of our offerings amid significant change in the environment in which we operate,” Roth says.

“With Acxiom, we have also significantly strengthened our position as it relates to helping clients succeed in a world where data-driven marketing solutions are core to brands' success.”

Last year IPG acquired global database marketing company Acxiom in a $3.13 billion deal.

Roth also added the company is on track to meet its organic growth targets of 2-3%.

IPG Mediabrands ANZ is yet to name its CEO after Danny Bass resigned from the position in February.

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