Interpublic Group Q4 2024 Earnings Report

Key Takeaways

Interpublic Group (IPG) reported a decline in revenue for Q4 2024, with total revenue reaching $2.86 billion, a decrease of 5.5% compared to Q4 2023. Revenue before billable expenses stood at $2.43 billion, down 5.9% year-over-year. Net income for the quarter was $344.5 million, with adjusted EBITA before restructuring charges and deal costs at $591.2 million, reflecting a margin of 24.3%. Adjusted earnings per share came in at $1.11, while reported EPS was $0.92.

Total Revenue

$2.86B

Previous year: $3.02B

-5.4%

EPS

$1.11

Previous year: $1.18

-5.9%

Adjusted EBITA Margin

24.3%

Organic Revenue Growth

-1.8%

Cash and Equivalents

$2.19B

Previous year: $2.39B

-8.4%

Interpublic Group Revenue

Interpublic Group EPS

Interpublic Group Revenue by Segment

Forward Guidance

IPG forecasts an organic revenue decline of 1% to 2% for FY 2025 due to continued client losses and challenges in the media trading environment. The company is implementing a business transformation plan aimed at enhancing efficiency and achieving $250 million in cost savings.

Positive Outlook

Strong margin management despite revenue decline
Business transformation plan targeting $250M in cost savings
Continued investment in technology and emerging capabilities
Strategic centralization of corporate functions for efficiency
Forecasting stable adjusted EBITA margin for 2025

Challenges Ahead

Revenue expected to decline by 1% to 2% in FY 2025
Client losses impacting financial performance
Challenging media trading environment
Ongoing industry evolution requiring structural changes
Merger-related uncertainties with Omnicom