IPG Q3 2022 earnings: organic growth slows, but upgrades full-year outlook

Interpublic Group Mediabrands (IPG) has released its third quarter and first nine months 2022 results, showing net revenue at $2.3 billion (AU$3.59 billion) – an increase of 1.5% from a year ago, with organic growth of 5.6%.

Third quarter net income was $251.8 million (AU$393.5 million), with adjusted EBITA before restructuring charges of $356.2 million (AU$556.7 million) and margin of 15.5% on revenue before billable expenses.

The company has upgraded its FY22 performance outlook, despite a more challenging macroeconomic environment, highlighting the strength of talent and diverse offerings, delivered through an integrated and flexible business model.

IPG CEO, Philippe Krakowsky, said: “Third quarter performance was highlighted by solid revenue growth in all world regions, and driven by contributions from across our portfolio, whether viewed by segments, agencies or marketing disciplines. For the quarter, organic growth was 5.6%, on top of 15.0% a year ago, which brings our three-year growth stack to 16.9%.


“Embedding digital across the portfolio and adding a layer of data and tech to our offerings have been important parts of our playbook, as has our commitment to strong agency brands and industry-leading talent. Our people are delivering marketing and media solutions that bring together creativity, technology and data in ways that drive growth for our clients and as we look to the future, an important area of focus will continue to be commerce and business transformation work.

“Despite heightened macroeconomic and geopolitical uncertainty, we are upgrading our expectation for organic growth for the full year to 7%. With growth at that level, we expect to achieve adjusted EBITA margin of 16.6%. As we further evolve our offerings and align our portfolio in the service of clients, we see significant opportunity to keep creating value for all of our stakeholders.”

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During the first nine months of 2022, the company repurchased 7.1 million shares of its common stock at an aggregate cost of $221.6 million (AU$346 million) and an average price of $31.10 (AU$48.59) per share, including fees.

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IPG currently trades at $28.24 (A$44.17) as of 21 October 2022 and has a market capitalisation of $11.04 billion (A$17.29 billion).


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