Interpublic Group (IPG) has reported its financial results for the fourth quarter and full year of 2024, showing a mixed performance amid challenging market conditions. Total revenue for the fourth quarter, including billable expenses, was $2.9 billion, with net revenue at $2.4 billion, reflecting an organic decrease of 1.8%. Reported net income stood at $344.5 million, while adjusted EBITA before restructuring charges and deal costs was $591.2 million, representing a 24.3% margin. Diluted earnings per share were reported at $0.92, with an adjusted figure of $1.11.
For the full year, total revenue reached $10.7 billion, with net revenue at $9.2 billion and an organic growth of 0.2%. Net income for the year was reported at $689.5 million, while adjusted EBITA before restructuring charges and deal costs was $1.5 billion, with a margin of 16.6%. Diluted earnings per share for 2024 stood at $1.83, with an adjusted figure of $2.77.
Philippe Krakowsky, CEO of IPG, highlighted the company’s ability to maintain strong margins despite industry challenges. He noted that while new business momentum in the fourth quarter and early 2025 is promising, it will not fully offset sizable client losses due to shifts in the media trading environment. As a result, IPG is forecasting an organic revenue decline of 1% to 2% for the full year 2025.
In response to ongoing industry evolution, IPG has announced an accelerated business transformation plan aimed at enhancing efficiency and generating significant cost savings. The program includes streamlining agency operations, centralising corporate functions, optimizing client delivery platforms, and expanding offshoring and nearshoring efforts. The company estimates these measures will yield approximately $250 million in net savings by 2025 at an equivalent cost, with a large portion being non-cash. These actions will help maintain an adjusted EBITA margin of 16.6% in 2025 despite revenue pressures.
The restructuring efforts are expected to strengthen IPG’s standalone capabilities and better position the company for its planned acquisition by Omnicom. Krakowsky emphasised that the proposed acquisition would create a highly dynamic and well-resourced entity with unmatched insights into consumer behavior and advanced marketing technologies. The combined company aims to deliver comprehensive marketing and sales expertise, backed by state-of-the-art data, production, and commerce platforms.
IPG’s fourth-quarter operating income was $567.9 million, with adjusted EBITA before restructuring charges and deal costs totaling $591.2 million. The company’s net income for the quarter was $344.5 million, with diluted earnings per share at $0.92 and an adjusted figure of $1.11. For the full year, IPG’s operating income was $1.2 billion, with adjusted EBITA before restructuring charges and deal costs reaching $1.5 billion.
Looking ahead, IPG remains focused on navigating industry shifts while maintaining operational efficiency. The company is optimistic about its transformation initiatives and the benefits of the Omnicom acquisition, which is expected to drive future growth and innovation in the marketing sector.
