Interpublic Group reported net revenue of $2.18 billion for the first quarter, up 0.3% on a reported basis with an organic gain (which excludes currency and M&A impact) of 1.3%, in line with the company’s previously stated outlook. 

The company said that its media operations, healthcare marketing and PR units continued to perform strongly and were the main growth drivers in the quarter. 

In the U.S., organic growth was 2.1%. Outside of the U.S., IPG reported a combined organic revenue decline of 0.5%.  

Company CEO Philippe Krakowsky said that “marketer sentiment has begun to improve relative to the back half of last year” and that the company’s new business pipeline “is more active.” 

For now IPG is sticking with previously stated guidance that it expects to achieve between 1% and 2% organic revenue growth for the full year. However, Krakowsky qualified the guidance, noting that “a recent decision by a significant ongoing client will adversely impact the balance of this year and likely make achieving the top end of that target more challenging.” 

The firm still expects to deliver a pre-tax profit margin of 16.6%.  

M&A this year will focus on broadening IPG’s commerce and digital transformation capabilities, Krakowsky said.  

Pre-tax income for the quarter was $160.6 million. Adjusted earnings for the quarter excludes after-tax amortization of acquired intangibles of $16.5 million, after-tax restructuring charges of $500,000 and an after-tax loss of 7.9 million on the sales of undisclosed businesses.