IPG is ahead its carrying out the company’s competitors in the first quarter of 2018, hinting that his business can be more sustainable earth. However, the company slightly missed its profit and revenue targets, and its stock price was down 1.15 percent at press time.
One of the reasons for the encouraging performance, which in contrast to other companies “the big five”, IPG was forced to protect its biggest customers in recent months.
On the call this morning, CEO Michael Roth selected new business efforts in the US and around the world, especially on the side of the media.
“Most of the comments you read about are not ours,” he said, citing victories in the financial, medical and automotive industries, such as the initiative gains of liberty mutual American media business and MullenLowe group winning global creative review for Edgewell personal care, the Creator of chic, Playtex, carefree and other brands.
“We see marketers return to growth mode”.Michael Roth, CEO of IPG
He also refers to the ongoing U.S. review of the army, which may be for 10 years, worth up to $ 4 billion, expressed optimism that McCann would save the account, saying, “we hope to hear this year.” He also noted that the good financial performance of McCann and the recent huge expansion in more consulting work.
In General, according to Roth, “we see marketers return to growth mode” despite lingering economic instability in the U.S. and abroad.
Key metrics in the report, according to Roth and other executives of the company, organic growth. The company organically grew by 4.3% in the U.S. and at the international level by 2.6 percent compared to last year. For comparison, the Agency publicis reported 2.8% organic growth in the U.S. and revenue growth of the American holding company omnicom fell 0.1 percent compared to last year.
Global network company IPG increased by 5.9% to 1.77 billion. and total revenue rose 5.1 percent to 2.17 billion dollars. Operating expenses also saw a 5.8 percent increase from 1.33 billion “salaries and related expenses” by 6.3 percent more than last year.
Analyst Brian Wieser of the pivotal research said the company “clearly exceeded the industry greatly”, although earnings per share were “below expectations.” While Roth said agencies in the United States, income growth was observed in Latin America and Britain, 10.6 percent and 7.8 percent, respectively, with totals for Europe and the Asia-Pacific region with a decrease. Wieser also warned investors that “about strengthening of control under the contract” affects all clients, and holding companies, and he continues on the path of IPG shares as “hold.”
Mouth and other executives stressed that the first quarter each year is traditionally the smallest in terms of revenue, and that IPG uses the new accounting standard 606 Kus for the first time this quarter.
ASC 606, which entered into force in December, affecting the way the report proceeds on the contracts with customers and significantly increase the number of “pass-through” company, which is not taxed at the corporate level.
“Our strong first quarter, and the current tone of the point we are on track to achieve our financial performance for the full year, most likely on a high-end 2 percent to 3 percent organic growth in net revenue and operating margin expansion of 60 to 70 basis points from 2017 our restated results,” read a statement from his mouth.