Interpublic Group of Cos. posted a second-quarter organic growth of 19.8%, a strong rebound from last year’s 9.9% decrease in the early months of the pandemic. Net revenue in Q2 was up 22.5% year-over-year, to $2.27 billion, which CEO Philippe Krakowsky called “the largest second quarter in the company’s history.”
The holding company also upgraded its forecast for the year, predicting it would achieve 9-10% organic growth in 2021, up from the 5-6% it foresaw in April. Krakowsky credited the jump not just to the overall improved economic outlook but also to internal cost savings and strong growth in the public health sector.
“Our growth across regions, disciplines and client sectors speaks to more than a recovering global economy,” Krakowsky said during an earnings call this morning. “It underscores the elevated value marketing and media partners can deliver on the integration of creativity, technology, and data, at scale, amid the significantly increased velocity of digital transformation.”
IPG's Integrated Agency Networks segment saw 20.5% organic growth, and Krakowsky called out McCann Worldgroup, FCB, MullenLowe, Huge and R/GA as strong performers.
Organic growth in the U.S. was 17.4% over last year, 14% in the Asia Pacific region and 49% in Latin America. IPG’s Dxtra segment—formed last year as an umbrella group of 28 agencies including Weber Shandwick, Golin, FutureBrand, Octagon and Jack Morton—posted 15.1% organic growth, a year after the latter two shops suffered from the collapse of the experiential market.
Organic growth is a key financial measure that factors out acquisitions, divestitures and effects of exchange rates.