IPG reports fourth-quarter growth during a flat 2023
Interpublic Group (IPG) ended the 2023 calendar year strongly, reporting fourth-quarter growth, despite a slight fall in its full-year performance.
For the December quarter, IPG saw total revenue, including billable expenses, of US$3.02 billion (A$4.65b), with net revenue at $2.59 billion ( A$4b), up 1.7% on the same quarter in 2022.
For the full year, total revenue sat at $10.89 billion (A$16.78b), with net revenue at $9.4 billion (A$14.48b), a slight drop of 0.1%.
Reported net income for the year was $1.1 billion (A$1.69b), while adjusted EBITA (before restructuring charges) was $1.6 billion(A$2.46b), with a margin of 16.7% on revenue before billable expenses.
Diluted earnings per share are $2.85 (A$4.39).
“We are pleased to report growth in the fourth quarter ahead of expectations, during our seasonally largest quarter and across each of our segments,” CEO Philippe Krakowsky said.
“The strength of our capabilities in media, healthcare and specialty marketing services was once again evident, as was the impact of macro uncertainty and challenges due to clients in the technology sector. These cross-currents continue to be in effect as we move into 2024.
“Looking ahead, we remain confident in the foundational strengths of our company. We anticipate that the strongest and most consistent growth areas of our business will perform well in the year ahead. We will continue to make strategic investments, including the ongoing development of our leading addressable capabilities, such as our data-powered tools, retail and performance media, and the expansion of our media buying models.
“Our current and prospective investment in AI ensures that this increasingly important technology extends to the full range of our offerings. Along with other strategic actions, this will allow us to continue to evolve our portfolio and asset mix.”
“We expect organic net revenue growth for 2024 in a range of 1% to 2%, and full-year adjusted EBITA margin of 16.6%, which consolidates significant margin progress in recent years and will allow us to continue to invest in key growth areas of the business.
“Our strong balance sheet and commitment to financial flexibility remain key priorities and the actions announced by our Board today, to increase our dividend and authorise additional share repurchase, speak to confidence in the strategic trajectory of our company.”
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Nathan Jolly is the Deputy Editor of Mumbrella. He joined the team in July, 2023.
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