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SEC Filings

INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 10/30/2017
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Slide 4 has more detail on our revenue growth. Revenue was $1.90 billion in the quarter, a decrease of 1.0% compared to Q3-16:
The impact of the change in currency exchange rates was positive 40 basis points.
The impact of net dispositions was negative 1.9%.
The resulting organic revenue increase was 50 basis points.

Again, organic growth was a full point higher, 1.5%, when excluding the $19 million decrease in our pass-through revenues, which occurred mainly in our events business in the U.K. and in the U.S.
To remind you, pass-throughs are mainly in our events businesses. They are recorded when we use third parties to support the delivery of services and when we are the principal on the third-party contract as opposed to an agent. We pay the third party, that’s our expense, and we collect from our client, that’s our revenue.
Events is a business of big discrete projects, and, as we have said many times, it can add some volatility to our organic growth. This is especially true when our revenue is divided into annual quarters and regions.
We tell you about it when they make a material difference to this critical metric, either up or down. We called it out a year ago in Q3-16 when pass-throughs added 90 basis points to growth at that time.
Just to reiterate, all of this has nothing to do with our media business. We run a pure agency media model, with no owned media inventory.
As you can see on the bottom half of this slide:
The organic increase in the quarter was 2.0% at our Integrated Agency Networks. This was led by notably strong performance at Mediabrands and FCB.
At our CMG segment, the organic change was a negative 5.0% in Q3. Excluding the impact of lower pass-through revenue, the change was not as steep at negative 1.7%, but still reflects the challenge we’ve seen this year in our project-based businesses.

Moving on to slide 5, revenue by region:
In the U.S., Q3 organic growth was 1.3% , and was 2.0% excluding the impact of lower pass-through revenue. We had very good performance from Mediabrands, as well as FCB, Deutsch, Hill Holliday and Octagon.
In the U.K., organic growth was 3.0%, and, again, growth was significantly stronger, 8.1%, excluding lower pass-through revenue due to a one-time event a year ago that did not repeat. We had solid growth across most major disciplines, led by McCann and Mediabrands.
In Continental Europe, our organic revenue change was 40 basis points, on top of 8.3% growth in Q3-16. We continued to see mixed performance in our largest markets, with growth in Germany and Italy, and decreases in France and Spain.
In Asia Pacific, our organic decrease in Q3 was 2.1%. Among our largest markets, solid growth in Australia, where R/GA continued to be a standout, was more than offset by decreases in China, India and Japan.
In LatAm, our Q3 organic decrease was 9.9%, against 18% growth a year ago, which included the ’16 Olympics. The decrease was due to macro weakness in Brazil, the