News

IPG to ‘beef up’ its business transformation as it targets 4 per cent growth in 2017

Interpublic is targeting organic revenue growth of 3 to 4 per cent in 2017 on the back of 2016’s 3.2 per cent increase in revenue.

Speaking as the group’s full year results for 2016 were released, Michael Roth, Interpublic’s chairman and chief executive, said: “Given our positive market momentum – having just concluded a three-year period of industry-leading organic revenue growth – we believe a competitive target of 3 per cent to 4 per cent on this key metric is appropriate for 2017.”

Roth also said in an annual earnings call that the group was “beefing up our areas on business transformation”.

IPG’s full-year revenue for 2016 was $7.85 billion, compared to $7.61 billion the previous year, with an organic revenue increase of 5 per cent compared to the prior-year period. This was comprised of an organic revenue increase of 5.8 per cent internationally and 4.4 per cent in the US.

“Across the board, 2016 was a successful year, in which we posted strong financial results, continued to build our digital and integrated offerings, and garnered the highest level of recognition for the creativity and effectiveness of our work in over a decade,” said Roth.

“We grew organically in every region of the world, with notably strong performance in the US, and with broad participation from across our agencies, disciplines and client sectors.

“Digital activity across the portfolio continues to be a significant driver of our results. We are well positioned to keep innovating, and to remain a vital partner in helping our clients navigate the complex marketing media environment. Of course, we also demonstrated our continued ability to focus on and deliver improved profitability. Margin expansion and capital returns are powerful drivers of value for Interpublic going forward.”

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella Asia newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing