IPG CEO praises 'range of agencies' for Q1 revenue growth

Interpublic Group (IPG) has reported a net revenue increase of 5.9 percent to $1.77 billion in the first quarter of 2018.

This is compared to $1.68 billion the same time last year. It’s a year-on-year organic net revenue increase of 3.6 percent. The strong start was attributed to a net rise of 4.3 percent in the U.S. and 2.6 percent internationally.

Total revenue shot up 5.1 percent to $2.17 billion, compared to $2.06 billion in the first quarter of 2017.

"Contributions to our performance came from a range of our agencies and marketing disciplines, including media, our three global creative networks, as well as digital, sports and experiential marketing," said Michael Roth, Interpublic's Chairman and CEO, on the earnings call Friday.

"Our strong first quarter performance and the current tone of business have us on track to deliver on our financial targets for the full year, likely at the highend of two percent to three percent organic growth of net revenue and with operating margin expansion of 60 to 70 basis points from our restated 2017 results," he added.

Organic revenue growth in IPG's Constituency Management Group of marketing services specialists and PR agencies was 0.6% in the first quarter to $292.7 million.

"The caliber of our offerings -- including embedded digital expertise across the portfolio, as well as further investment in innovative data and analytics capabilities -- combined with the strength of our balance sheet and our commitment to capital return, means there is significant potential at IPG for further value creation and enhanced shareholder value," said Roth.