Interpublic Group posted very strong fourth quarter and full-year results, seeing 7.1 percent organic revenue growth to $2.4 billion and a 5.5 percent increase to $8 billion, respectively.
The holding company over-delivered after previously guiding that it expected 4 percent to 4.5 percent organic growth in Q4.
Net income was up more than 27 percent in the period to $342.5 million, with an 11.8 percent jump to to $637.7 million for 2018. On a regional basis, U.S. organic revenue growth was 6.3 percent, while international growth was 8 percent. The results do not include the performance of recently acquired Acxiom. These performance metrics will be included in the fourth quarter of 2019 as part of organic growth.
"Our results for the year further demonstrate the strength of our client centric integrated offerings and the quality of our people, which have produced leading organic growth and margin improvement over a period of many years," said IPG CEO Michael Roth on this morning’s earnings calls. "It underscores a distinctive level of achievement amid significant change in our industry and the environment in which we operate."
He called out FCB, Mediabrands, Huge, McCann and R/GA as all having "notably strong" fourth quarters, with consumer goods, health care, retail and auto serving as the top performing client sectors. Weber Shandwick and Golin were also praised for their performances as part of IPG’s Constituency Management Group.
Roth said the "worldwide tone of business among our clients remained solid" last year. For 2019, he has a positive outlook despite "shared concerns around macro issues, which include the aging economic expansion, political turmoil, international trade and interest rates."