IPG (Interpublic) has announced its Q4 and full year 2024 figures and they aren’t the car crash some were expecting. IPG is planning to merge with rival Omnicom some time this year in a mooted £13bn deal.
In Q4:
* Total revenue, including billable expenses, was $2.9 billion
* Revenue before billable expenses (“net revenue”) was $2.4 billion, with organic decrease of -1.8%
* Reported net income was $344.5 million
* Adjusted EBITA before restructuring charges and deal costs was $591.2 million with margin of 24.3% on revenue before billable expenses
* Diluted earnings per share of $0.92 as reported and $1.11 as adjusted
FULL YEAR
* Total revenue, including billable expenses, was $10.7 billion
* Revenue before billable expenses (“net revenue”) was $9.2 billion, with organic growth of 0.2%
* Reported net income was $689.5 million
* Adjusted EBITA before restructuring charges and deal costs was $1.5 billion, with margin of 16.6% on revenue before billable expenses
* Diluted earnings per share of $1.83 as reported and $2.77 as adjusted.
Organic revenue is forecast to fall between 1-2% in 2025 following a number of big account losses (less than some predictions.)
CEO Philippe Krakowsky (above) says: “Today we are reporting an organic revenue increase of 20 basis points for the full year 2024, along with adjusted EBITA margin in-line with our forecast of 16.6%. Our strong margin result reflects continued effective operating discipline by our teams, notwithstanding the challenges of the past year.
“Solid new business momentum in the fourth quarter and early 2025 will begin to come online later this year, though it will not offset sizable client losses incurred last year due largely to changes in the media trading environment. Factoring in those headwinds, and with the benefit of otherwise sound underlying performance, we are forecasting an organic decrease in revenue for the full year of 1% to 2%.”
On the Omnicom merger Krakowsky says: “We believe the proposed acquisition (Omnicom, in effect, is buying IPG) will result in the industry’s most dynamic and well-resourced company. Our understanding of consumer behavior at every step of the marketing lifecycle will be deeper than any other provider, as will our capacity to invest in emerging technologies.
“Together, we will bring to market an unparalleled range of talented practitioners in every marketing and sales discipline, supported by exceptional technology, data, production and commerce platforms, to unlock growth opportunities and measurable results for our clients and for the combined company.”
IPG shares stayed stable following the results. There’s no guarantee the merger with Omnicom will go through but it looks more likely than not. IPG’s top management (although not thousands of employees) will sleep more easily when it does.
