Interpublic and Publicis enjoy much improved second quarter

Both Publicis and Interpublic announced particularly encouraging results for the second quarter today, although Interpublic still has a long way to go to achieve anything like the 15% operating profit margin normally targeted in the industry.

Publicis reported revenue growth of 14.9%, or 12.5%% before including the added benefit of currency translation gains. About 7% of the growth came from recent acquisitions.  Its operating profit margin on revenue was 13.9% – up from 11.6% for the equivalent period last year. The post-tax profit for the half year was €213 million, compared with €167 million in the first half of 2009.

Interpublic’s revenues grew by 9.7% in the latest quarter, contributing to a more modest improvement over the full half year.  The half year’s operating profit was $117.8 million – much improved from the $15 million achieved in the corresponding period last year.  The operating profit margin for the half year was 4%, but this had improved to 11% in the second quarter.

Finance costs absorbed almost half of Interpublic’s operating profit in the half year.  Its profit after interest, tax and other non-operating charges was a modest $33.8 million after making good a $71.5 million loss in the first quarter.

© Fintellect Ltd

  • Gail Parminter

    I agree, Bristol is emerging as a creative hub where people aren’t afraid to be different. I chose the city as the base for Madwomen after relocating to the South West last year. 

    Even though I was still working in a London agency, and commuting every day, I made it my mission to find out what was happening in Bristol. 

    Unlike London, I found the agency community incredibly inclusive, collaborative and supportive of one another – sharing ideas and offering help. 

    I joined the Bristol Creative Directors’ Network, and was welcomed, even though, at the time I wasn’t even located in Bristol. 

    The group, started by Jon Waring at 3-Sixty, meets regularly to share knowledge and inspiration. Speakers at the group have included Patrick Collister and Rory Sutherland, and next week we have my old CD, Andrew Cracknell joining us.

    The city has a great atmosphere and is full of inspirational people – it’s given me a massive burst of energy – which, having just started up an agency, is much needed.

    The Vision conference was exciting, and the audience open-minded and receptive. My talk, delivered with Chris, was on a highly controversial subject – whether advertising is letting down the female consumer – a subject I may have been a bit more wary of broaching in front of a London agency audience.

    Thanks to everyone who came down to Bristol, it was a brilliant 2 days.

  • Ben Templeton

    Great to hear such an endorsement from a well respected player from the big smoke!

    One of the great things about the tech and creative scene is the sheer diversity on every rung of the ladder, from volunteers willing to sew RFID tags into clothing for 5 hours, across the board to companies like HP investing time and money into kicking off the Pervasive Media Studio. Thought Den wouldn’t be where they are today without the support of this fantastic wess-coutnry community.

    Chris, very grateful of the time you took out to talk at the Creative
    Director’s Network a year or so ago and the insights you brought to
    Vision Conference.

  • david sloly

    Chris, I think your observation matches that of many others that visit Bristol.

    The compact size of the city coupled with a friendly vibe makes it easy to quickly test new thinking face to face with your peers.

    Again, the size of the city reduces the chances of your idea then being nicked by some little scallywag as everyone knows eachother.

    Thank you to everyone that attended Vision 2011 and helped make it a great success for Bristol.