IPG's Q1 FY2022 revenue increases 9.8% YoY to reach $2.23 billion

Interpublic Group (IPG) has reported an increase in revenue by 9.8% to reach $2.23 billion year-on-year, with organic net revenue growth of 11.5%, in Q1 FY2022. The advertising network’s net income stood at $159.4 million.

Net revenue in 2021 Q1 was $2.03 billion. Operating income in the first quarter of 2022 was $245.7 million compared to $243.0 million in 2021.

While Asia-Pacific reported an organic increase of 9.2% to $174.6 million. The organic growth in the US was +12.2%. 

IPG also updated its outlook for the year, from the previously-announced expectation for 5% organic revenue growth in 2022 to approximately 6%. 

Philippe Krakowsky, CEO of IPG, said, “A differentiator of our performance, in the quarter and over a period of many years, remains our ability to deliver marketing and media solutions that bring together award-winning creativity with best-in-class technology and data infrastructure. This combination is responsive to the evolving needs of modern marketers for more digital, precise, and data-informed thinking, as well as the kind of integrated programs that allow IPG to deliver higher-order business solutions.”

He further said, "While macro uncertainty is still elevated as a result of geopolitical and public health issues, we recently refreshed our bottom-up outlook for the year with key clients and with our operating teams, and the tone of the business remains positive. We are also reiterating our expectation for adjusted EBITA margin of 16.6% for the full year.”

For the first quarter of 2022, total operating expenses, excluding billable expenses, increased by 11.0%, compared to the net revenue increase of 9.8% from the same period a year ago.

The staff cost ratio, which is total salaries and related expenses as a percentage of net revenue, increased to 70.2% in the first quarter of 2022 from 68.7% in the same period in 2021. Salaries and related expenses increased 12.3% to $1.56 billion during the first quarter of 2022, compared to $1.39 billion for the same period in 2021. 

Net interest expense decreased by $13.1 million to $29.6 million in the first quarter of 2022 from a year ago.

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