IPG has announced Q2 results with net revenue rising to $2.38 billion, which is an increase of 4.7% from a year ago, with organic growth of 7.9%.
“Growth in the quarter was broad-based across world regions, client sectors and our operating units,” said Philippe Krakowsky, CEO of IPG.
“A differentiator of our performance has been our ability to bring together creativity, digital technology and data to create marketing solutions that are responsive to the evolving business transformation needs of our clients.”
Looking ahead IPG raised its 2022 growth forecast from six percent to 6.5 percent.
“Like all companies, as we look ahead we are facing a period of macroeconomic and geopolitical uncertainty, and the limited visibility that comes with such an environment,” said Krakowsky.
“In April, we upgraded our 2022 organic growth expectation to 6% and given our growth through the first half of the year, we see upside and believe we will exceed 6.5% organic growth for the full year. We continue to expect that we will deliver adjusted EBITA margin of 16.6%.
IPG’s margins fell to 15.6 percent from 17.9 percent in 2021 due to “increased headcount from a year ago required to support our strong 11.4% organic growth over the trailing twelve months, and to the impact of the pandemic on our operating expenses a year ago, when certain expenses were at historically low levels.”
IPG added that salaries and related expenses increased 9.6% to $3.15 billion during the first half of 2022, compared to $2.88 billion for the same period in 2021.
- Second quarter net revenue was $2.38 billion, an increase of 4.7% from a year ago, with organic growth of 7.9%
- Second quarter net income was $229.6 million, with adjusted EBITA of $370.1 million and margin of 15.6% on net revenue
- Second quarter diluted EPS was $0.58 as reported and $0.63 as adjusted
- The company expects FY22 organic growth to exceed 6.5% and to deliver 16.6% adjusted EBITA margin for the year
- The company highlights strength of talent, resources, and differentiated solutions
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