The Interpublic Group of Companies Inc. (IPG, Financial) filed Quarterly Report for the period ended 2011-06-30.
Interpublic Group Of Cos. has a market cap of $5.91 billion; its shares were traded at around $12.1 with a P/E ratio of 24.7 and P/S ratio of 0.9. The dividend yield of Interpublic Group Of Cos. stocks is 2%.
During the first half of 2011, our revenue increased by $266.8, or 9.0%, compared to the first half of 2010, primarily consisting of an organic revenue increase of $201.1, or 6.8%, and a favorable foreign currency rate impact of $70.7. Our organic increase was primarily driven by factors similar to those noted above for the second quarter of 2011. Also contributing to our organic revenue increase during the first half of 2011 was increases in the technology and telecom sector. The Latin America region also contributed to the organic revenue increase due to higher revenues in Brazil in the first half of 2011 when compared to the prior-year period.
Our staff cost ratio, defined as salaries and related expenses as a percentage of total consolidated revenue, increased in the second quarter of 2011 to 62.9% from 61.5% when compared to the prior-year period. Salaries and related expenses in the second quarter of 2011 increased by $104.7 compared to the second quarter of 2010, primarily consisting of an organic increase of $68.8 and an adverse foreign currency rate impact of $37.4. The organic increase was due to higher base salaries, benefits and temporary help of $60.6 incurred to support business growth that began in 2010. We have increased our workforce over the past several quarters as our businesses have grown. Also contributing to the organic increase was higher incentive award expense and severance expense. The organic increase occurred across all regions, primarily in our domestic market.
Our staff cost ratio increased in the first half of 2011 to 67.7% from 66.8% in the first half of 2010. Salaries and related expenses in the first half of 2011 increased by $205.5 compared to the first half of 2010, primarily consisting of an organic increase of $160.2 and an adverse foreign currency rate impact of $46.7. The organic increase was due to higher base salaries, benefits and temporary help of $127.9 due to the factors noted above for the second quarter of 2011 and, to a lesser extent, increases in severance expense and incentive award expense. The organic increase occurred across all regions, primarily in our domestic market.
Our office and general expense ratio, defined as office and general expenses as a percentage of total consolidated revenue, decreased in the second quarter of 2011 to 27.0% from 27.5% in the second quarter of 2010. Office and general expenses in the second quarter of 2011 increased by $27.9 compared to the second quarter of 2010, primarily consisting of an adverse foreign currency rate impact of $17.3 and an organic increase of $12.6. The organic increase was primarily due to higher production expenses related to pass-through costs for certain projects where we acted as a principal that increased in size or were new during the second quarter of 2011. Also contributing to the organic increase was higher discretionary spending to support business growth.
Our office and general expense ratio decreased in the first half of 2011 to 28.3% from 29.2% in the first half of 2010. Office and general expenses in the first half of 2011 increased by $50.3 compared to the first half of 2010, primarily consisting of an organic increase of $30.2 and an adverse foreign currency rate impact of $21.7. The organic increase was driven by factors similar to those noted above for the second quarter of 2011.
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Interpublic Group Of Cos. has a market cap of $5.91 billion; its shares were traded at around $12.1 with a P/E ratio of 24.7 and P/S ratio of 0.9. The dividend yield of Interpublic Group Of Cos. stocks is 2%.
Highlight of Business Operations:
During the second quarter of 2011, our revenue increased by $129.0, or 8.0%, compared to the second quarter of 2010, primarily consisting of an organic revenue increase of $76.2, or 4.7%, and a favorable foreign currency rate impact of $57.5. Our organic increase was attributable to net client wins and higher spending from existing clients in nearly all geographic regions. The sectors which contributed to the organic revenue increase were health and personal care, and auto and transportation. These increases were partially offset by decreases in the packaged goods sector. Regionally, the largest organic revenue increase was in our domestic market, primarily related to the factors noted above. In our international markets, the organic revenue increase occurred in nearly all regions, including the United Kingdom, the Asia Pacific region, primarily in India and China, and our Other region, primarily in South Africa. The Continental Europe region contributed to the organic revenue increase, although this region is still being negatively impacted by certain European countries where a continued weakened economic climate persists.During the first half of 2011, our revenue increased by $266.8, or 9.0%, compared to the first half of 2010, primarily consisting of an organic revenue increase of $201.1, or 6.8%, and a favorable foreign currency rate impact of $70.7. Our organic increase was primarily driven by factors similar to those noted above for the second quarter of 2011. Also contributing to our organic revenue increase during the first half of 2011 was increases in the technology and telecom sector. The Latin America region also contributed to the organic revenue increase due to higher revenues in Brazil in the first half of 2011 when compared to the prior-year period.
Our staff cost ratio, defined as salaries and related expenses as a percentage of total consolidated revenue, increased in the second quarter of 2011 to 62.9% from 61.5% when compared to the prior-year period. Salaries and related expenses in the second quarter of 2011 increased by $104.7 compared to the second quarter of 2010, primarily consisting of an organic increase of $68.8 and an adverse foreign currency rate impact of $37.4. The organic increase was due to higher base salaries, benefits and temporary help of $60.6 incurred to support business growth that began in 2010. We have increased our workforce over the past several quarters as our businesses have grown. Also contributing to the organic increase was higher incentive award expense and severance expense. The organic increase occurred across all regions, primarily in our domestic market.
Our staff cost ratio increased in the first half of 2011 to 67.7% from 66.8% in the first half of 2010. Salaries and related expenses in the first half of 2011 increased by $205.5 compared to the first half of 2010, primarily consisting of an organic increase of $160.2 and an adverse foreign currency rate impact of $46.7. The organic increase was due to higher base salaries, benefits and temporary help of $127.9 due to the factors noted above for the second quarter of 2011 and, to a lesser extent, increases in severance expense and incentive award expense. The organic increase occurred across all regions, primarily in our domestic market.
Our office and general expense ratio, defined as office and general expenses as a percentage of total consolidated revenue, decreased in the second quarter of 2011 to 27.0% from 27.5% in the second quarter of 2010. Office and general expenses in the second quarter of 2011 increased by $27.9 compared to the second quarter of 2010, primarily consisting of an adverse foreign currency rate impact of $17.3 and an organic increase of $12.6. The organic increase was primarily due to higher production expenses related to pass-through costs for certain projects where we acted as a principal that increased in size or were new during the second quarter of 2011. Also contributing to the organic increase was higher discretionary spending to support business growth.
Our office and general expense ratio decreased in the first half of 2011 to 28.3% from 29.2% in the first half of 2010. Office and general expenses in the first half of 2011 increased by $50.3 compared to the first half of 2010, primarily consisting of an organic increase of $30.2 and an adverse foreign currency rate impact of $21.7. The organic increase was driven by factors similar to those noted above for the second quarter of 2011.
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