Interpublic posts 8.5% organic revenue growth in second quarter

Interpublic Group, the US advertising giant that owns agency networks including Lowe and McCann Erickson, has organic revenue growth of 8.5% in the second quarter. IPG reported revenue of $1.62bn in the second quarter thanks to huge growth of 13.6% in the US and "double digit" organic increases in "key developing markets". Revenue from operations outside the US rose 4.7% year on year to $657m. Over the first six months IPG reported 3.1% organic growth to $2.96bn revenue. Operating income was $117.8m in the first half, compared with just $15m for the same period in 2009. IPG's operating margin was just 4% in the first half. "We are pleased with the second quarter's strong performance in terms of both growth and profitability," said Michael Roth, chief executive of IPG. "Contributions to our organic revenue growth came from existing and new clients across a range of industry sectors, from the US and emerging international markets and from a broad cross-section of the agencies in our portfolio". Roth added a note of caution that with continued "areas of uncertainty in the global economy" IPG would continue to be run conservatively. However he added that with "revenue stability and growth back in the picture, we feel we are very much on track to deliver on our operating margin objective of better than 8% for 2010". In terms of salaries and expenses IPG recorded a 2.3% increase in the second quarter to $991m and $1.97bn in the first half. Severance pay was $27.5m in the first half of the year. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".