IPG reports 7% organic growth for 2022
Interpublic Group (IPG) has reported a total revenue for 2022 of US$10.9 billion (A$15.7 billion) and organic growth of 7%.
Net income for the year was US$938 million, and adjusted EBITA before restructuring charges of US$1.57 billion.
In 2021 full year net revenue was US$9.11 billion, an increased of 12.9% compared to the same period in 2020.
Forth quarter 2022 total revenue was US$2.99 billion including billable expenses, which equated to organic growth of 3.8%.
Philippe Krakowsky, CEO of IPG, said: “Once again, our people are at the heart of our strong performance this year… Our three-year organic growth stack stands at 14% – a level of performance that speaks to the strength and relevance of our offerings, particularly in services and sectors demanding emerging media, precision and accountability.
“As we look ahead, the macroeconomic situation remains uncertain. Marketers are approaching 2023 with conviction in the need to stay invested and be in the marketplace, as well as a degree of caution. We’re confident that the strongest growth areas of our business, such as consultative media services, healthcare marketing, experiential marketing, and commerce, all supported by our best-in-class data capabilities and creative assets, will continue to perform despite the current economic headwinds.
The group expects organic net revenue growth for 2023 of 2% to 4% and to further expand its adjusted EBITA margin to 16.7% for the full year.
IPG 2022 results
“Strategically, we’ll continue to build on IPG’s evolution to a higher value solutions provider,” he added. “Our strong balance sheet and commitment to financial flexibility remain key priorities.”
The board has approved an increase quarterly dividend of 7% (US$0.31 per share) and a new US$350 million share repurchase program of 10.3 million shares.
The Asia Pacific region saw a 5.4% increase in net revenue growth in 2022, while in the final quarter it reported a 3% increase.
Regional performance
Health care remains the largest client sector for the group, at 28% of revenue before billable expenses.
IPG has a share price of US$37.12 today, and a market capitalisation of US$14.422 billion.
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Olivia Kruimel is the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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