Mar 31, 2021

Interpublic Group Q1 2021 Earnings Report

Interpublic Group reported an increase in net revenue and net income, driven by organic growth and strategic restructuring actions.

Key Takeaways

Interpublic Group (IPG) announced its first quarter 2021 results, featuring a 2.8% increase in net revenue to $2.03 billion and organic net revenue growth of 1.9%. Net income was reported at $91.7 million, with adjusted EBITA before restructuring at $265.9 million. The company's diluted EPS was $0.23 as reported, and $0.45 as adjusted. IPG is positioned to deliver full-year 2021 organic growth of 5.0% to 6.0% and adjusted EBITA margin of approximately 15.5%.

Net revenue increased by 2.8% to $2.03 billion, with organic net revenue growth of 1.9%.

Net income was $91.7 million, and adjusted EBITA before restructuring was $265.9 million.

Diluted EPS was $0.23 as reported and $0.45 as adjusted.

The company expects full-year 2021 organic growth of 5.0% to 6.0% and an adjusted EBITA margin of approximately 15.5%.

Total Revenue
$2.03B
Previous year: $2.36B
-14.1%
EPS
$0.45
Previous year: $0.11
+309.1%
Organic Revenue Growth
1.9%
Previous year: 0.3%
+533.3%
Adjusted EBITA Margin
13.1%
Previous year: 4.9%
+167.3%
Gross Profit
$342M
Previous year: $171M
+99.7%
Cash and Equivalents
$2.02B
Previous year: $1.55B
+30.3%
Free Cash Flow
-$278M
Previous year: -$322M
-13.6%
Total Assets
$16.3B
Previous year: $4.2B
+289.3%

Interpublic Group

Interpublic Group

Forward Guidance

IPG anticipates delivering full-year 2021 organic growth in the range of 5% to 6% and achieving an adjusted EBITA margin of approximately 15.5%, predicated on a reasonably steady course of global economic recovery.

Positive Outlook

  • Company is positioned to deliver full-year 2021 organic growth of 5.0% to 6.0%.
  • Company expects to achieve 2021 adjusted EBITA margin of approximately 15.5%.
  • Strong start to the year reflects the quality of talent across the organization.
  • Successful evolution of offerings at a time of accelerating, transformational change.
  • Ability to create marketing and media solutions that bring together outstanding creativity with the benefits of technology.

Challenges Ahead

  • The effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition.
  • The impacts of the novel coronavirus (COVID-19) pandemic and the measures to contain its spread
  • Our ability to attract new clients and retain existing clients
  • Our ability to retain and attract key employees
  • Failure to fully realize the anticipated benefits of our 2020 restructuring actions and other cost-saving initiatives.