Revenue up across the board at IPG in Q3

The company's recovery takes off, with double-digit growth across every region and service offering.
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By any measure, IPG has a lot to be happy about after Q3.

Organic net revenue was up 15% year-over-year at the holding company and sits at 12% for the year-to-date. The Q3 results also represent a 8.9% increase in net revenue compared to the same period in 2019, and two-year compound organic growth currently sits at 10.7%.

Philippe Krakowsky, CEO of IPG, was bullish about the company’s results, which were up by double digits across business segments and geographic regions.

The company’s Integrated Agency Network segment – which includes agencies like McCann, FCB, Huge and the IPG Mediabrands unit – had organic growth of 14.4%. The DXTRA unit – which includes specialty agencies like Weber Shandwick and Golin – had organic growth of 18.6%.

Regionally, the company’s “All Other Markets” segment, which includes Canada, Africa and the Middle East, had organic growth of 17.1%, and reached 17.9% for the year-to-date. Organic revenue in the U.S., the company’s largest business segment, grew by 14.7% in Q3 and 10.4% for the year-to-date.

“The strategic steps we have taken over the long-term position us as a high value business partner that helps marketers thrive in the digital economy,” Krakowsky said. “By combining the power of creativity with the benefits of data and technology, we can create integrated solutions that are precise and accountable, solving business issues and driving growth for clients across a range of business sectors.”

On the expenses front, while IPG is now paying less for office expenses – representing 13.3% of net revenue, compared to 15.8% last year, the company is also spending 19% more on staff salaries, which the company says is the result of increased performance-based employee incentive compensation expense and temporary higher labour expenses to support growth.

As with Publicis Groupe, IPG’s results have led it to increase its full-year forecast and it now expects to deliver 11% organic revenue growth.