|INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 07/26/2017|
Slide 4 has more detail on our revenue growth.
Revenue was $1.88 billion in the quarter, a decrease of 1.7%.
Compared to Q2-16, the impact of the change in currency exchange rates was negative 1.1%.
The impact of net dispositions was negative 1.0%.
The resulting organic increase was 0.4%.
Organic growth was somewhat higher, at 1.0%, when excluding the $11 million decrease in our pass-through revenues, which occurred mainly in our events business in the U.S.
As you can see on the bottom half of this slide, the organic increase in the second quarter was 1.0% at our Integrated Agency Networks. This was led by Mediabrands, with another strong performance, along with McCann, Hill Holliday and Huge.
At our CMG segment, the organic change was negative 2.2% in Q2, though not as steep excluding the decrease in pass-through revenue, and increased 1.0% organically for the six months.
Moving on to slide 5, revenue by region:
In the U.S., Q2 organic growth was 70 basis points and was 1.7% excluding the impact of lower pass-through revenues. We had very good performance from Mediabrands, McCann, Hill Holliday and Huge.
In the U.K., organic growth was 1.9% and, here again, growth was stronger at 3.2% excluding lower pass-through revenues in our events business. We had leadership from McCann and Mediabrands.
In Continental Europe, our organic revenue change was negative 2.5%. That is a departure from recent performance on the Continent, as it includes the impact of a recent account loss. We continued to see mixed performance in our largest markets. While Germany increased in the quarter, we had decreases in France, Spain and Italy.
In AsiaPac, our organic decrease in Q2 was 1.1%. While we had growth in India and Australia, it was more than offset by decreased revenue in Japan and in China, where the market remains notably soft.
In LatAm, Q2 organic growth was flat, on top of 16% growth a year ago. The macro environment in Brazil remains challenging, but we continued to have very strong performance across Mexico, Argentina and Chile.
In our Other markets group, organic growth was 3.2%, which was due to strong increases in Canada, driven by Mediabrands, and South Africa, driven by FCB.
Moving on to slide 6, we chart the longer view of our organic revenue change on a trailing-12-month basis. The most recent data point is 3.2%.
On slide 7, we turn to our operating expenses.
In the second quarter, our total operating expenses decreased by 90 basis points from a year ago, under our reported revenue decrease of 1.7%. The FX impact to operating expenses was negative 1.2%.