IPG reports 22.5% increase in Q2 revenue as Australia leads APAC growth
The Interpublic Group of Companies (IPG) has announced its financial results for both the second quarter and first half of 2021, reporting strong growth across both segments as IPG continues its recovery after a COVID-impacted 2020.
Revenue for the second quarter of 2021 was US$22.27 billion, an increase of 22.5%. During that time, organic net revenue increased 19.8%.
Adjusted EBITA before restructuring charges rose to US$405.8 million in the second quarter, compared to a figure of US$174.9 million for the same period in 2020. Adjusted EBITA before restructuring charges margin on net revenue increased to 17.9%, compared to 9.4% in 2020.
IPG Q2 Results 2021. All figures in USD. [click to enlarge]
Total debt was US$3.47 billion, compared to US$3.47 billion at 31 December 2020.
CEO Phillipe Krakowsky told investors: “Our performance this quarter is highlighted by very strong revenue growth across agencies, disciplines and world regions, and by outstanding margin performance.
“These results represent a remarkable rebound from the impact of the pandemic on our business, demonstrating the resilience of our people, as well as their commitment to each other, our clients, and our craft.”
Krakowsky also told investors that organic growth in the Asia Pacific region for Q2 was 14%, with Australia leading the way. “Our organic growth was paced by Australia, the Philippines, Singapore, Thailand and India, while China and Japan decreased.”
IPG CEO Phillipe Krakowsky
The results left IPG to upgrade its full-year expectations.
“In light of our very strong second quarter, we believe it’s appropriate at the mid-point of this unprecedented year to upgrade our expectations for full year performance. While doing so, we also recognise that the COVID pandemic continues to pose a risk to the macro environment in many parts of the world,” Krakowsky added.
“Predicated on continued progress on public health issues, we believe we can deliver organic growth for the full year of 9%-10%, and, with that level of growth, we would expect to achieve 2021 adjusted EBITA margin of approximately 16%. As such, we see this as another year of strong value creation for all of our stakeholders.”
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Zanda Wilson was a reporter and podcast producer at Mumbrella, specialising in radio reporting. He left Mumbrella in September 2021.
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