Interpublic Group predicts annual beating revenue target following third quarter results
InterPublic Group (IPG) has predicted that it is set to exceed its revenue growth target of 4-5 per cent having announced a 1.3 per cent revenue increase.
The advertising network which owns McCann World Group, R/GA and the Martin Agency has reported total revenue for the third quarter of $1,865.5bn against a growth in operating margin of 10.3 per cent year on year.
For the first nine months of the year, revenue increased by 1.6 per cent to $5.42bn. The company also revealed that while it's revenue in the US had grown by 7.2 per cent to $1,138.5bn, its international figures had dipped by 6.7 per cent to $727m.
As a result, Michael Roth, chief executive of IPG issued a statement claiming to be "pleased" with the results.
"Our focus on our best-in-class offerings and continued cost discipline, combined with our company's financial strength and robust capital return programs, will continue to be a source of significant value creation. In light of the very strong performance to date through the third quarter, we believe we are on track to exceed 5 per cent organic revenue growth for 2015, above our previous target of 4-5 per cent, and that we are well positioned to deliver 100 basis points of operating margin improvement, the high end of our targeted range," continued Roth.
During the third quarter, the company also recorded losses of $38m on sales of business and due to 'certain assets' which have been held for sale.