IPG APAC Q4 revenue up 9.7% driven by India & 3 other markets
For the full year, IPG's revenue from the Asia Pacific market has increased 11% organically to $791.4 million
Advertising major IPG's Asia Pacific revenue has increased 9.7% organically to $237.8 million led by a strong performance in Australia, Singapore, India and Japan, the company's CFO, Ellen Johnson, said during the Q4 2021 earnings conference call. For the full year, the revenue from the Asia Pacific market has increased 11% organically to $791.4 million.
The US revenue grew 12.1% organically against a decrease of 1.8% a year ago driven by strong performance across both IAN and DXTRA segments across client sectors. The US market contributed 61% to IPG's net revenue in the quarter and 63% for the full year.
International markets were 39% of the company's net revenue in the quarter and increased 11% organically compared to a 10.5% year ago. The UK revenue increased 6.2% organically led by offerings in media, data and tech by McCann and by IPG DXTRA. Revenue from Continental Europe grew 6% with growth across markets like Germany, Spain, Italy, France and the Netherlands.
"Asia Pacific increased 9.7% organically, with a strong performance in Australia, Singapore, India and Japan. China decreased from a year ago. In LatAm, we continue to see exceptional results with organic growth of 22.5% in the quarter. Colombia, Argentina, Brazil and Chile were all notably strong. Our other international markets group, which consists of Canada and the Middle East and Africa grew 18.7% organically, which reflects double-digit growth across each of those markets," Johnson said.
In Q4 2021, net revenue increased by 11.6% to $2.55 billion compared to $2.28 billion in the fourth quarter of 2020. The organic net revenue increase was 11.7%, which comprised an organic net revenue increase of 12.1% in the US and an increase of 11% internationally. The total revenue for the fourth quarter of 2021, which includes billable expenses, was $2.93 billion compared to $2.55 billion in 2020.
Full-year 2021 net revenue of $9.11 billion increased by 12.9% compared to $8.06 billion in 2020. The organic net revenue increase was 11.9%, which comprised an organic net revenue increase of 10.9% in the U.S. and an increase of 13.9% internationally. Full year 2021 total revenue, which includes billable expenses, was $10.24 billion, compared to $9.06 billion in 2020.
The company has two segments: Integrated Agency Networks (IAN) and IPG DXTRA (DXTRA). The IAN segment includes global communications and marketing services agencies. The DXTRA segment includes Weber Shandwick, DeVries, Golin, FutureBrand, Jack Morton and Octagon Worldwide, which provides clients with diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting.
IPG CEO Philippe Krakowsky said, “As is evident in our results, the combination of strategy, talent and culture we have built at IPG continues to drive a high level of innovation, collaboration and creativity. Our strong performance reflects more than the cyclical economic recovery, it further validates the growing role we are playing with marketers as they adapt and enhance their businesses to meet the challenges and opportunities of the digital economy.
“Clients are increasingly looking for partners with expertise in first-party data management, performance media, creative ad tech and direct-to-consumer commerce, areas in which we remain very well-positioned. During the quarter and throughout the year, our best-in-class agency brands increasingly tapped into IPG’s foundational technology and data layer. Across marketing disciplines, channels and use cases, our combination of data, technology and creativity is resulting in a growing range of effective marketing and media solutions that help our clients to grow their brands and build their businesses.
“As we look ahead, we anticipate that 2022 will be another year of strong growth, on top of our multi-year, industry-leading performance. As such, we are targeting full-year organic growth of 5% in 2022. With that level of growth, we expect that in 2022 we will consolidate the significant gains achieved in adjusted EBITA margin over the past two years, at a level of approximately 16.6%. Our commitment to a strong balance sheet and financial flexibility remains a key priority, and the actions announced by our Board today, to increase our dividend and resume our share repurchase program, further speak to confidence in the forward trajectory of our company. Our strong financial foundation and performance, coupled with the talent of our people and the competitiveness of our offerings, will be key to our continued focus on further enhancing value for all of our stakeholders.”
