IPG predicts 1-2% revenue drop for 2025

Interpublic Group has forecast an decrease in organic revenue for 2025 of 1-2%, as “sizable client losses” intensified at a greater rate than anticipated in Q4 2024.

Speaking on an investor call on February 12 for Q4 and full year 2024, chief executive Philippe Krakowsky said, “Solid new business momentum in the fourth quarter and early 2025 will begin to come online later this year, though it will not offset sizable client losses incurred last year due largely to changes in the media trading environment. Factoring in those headwinds, and with the benefit of otherwise sound underlying performance, we are forecasting an organic decrease in revenue for the full year of 1% to 2%."

Krakowsky also revealed details of a restructure that will take place throughout 2025 to get IPG ready for its acquisition by Omnicom. 

The restructure is expected to save IPG about $250 million this year, with minimal overlap in the $750 million in “synergies" expected to be created by the merger. It will affect agencies as the group seeks “operating efficiencies”, along with corporate services and “certain areas of client service delivery”.

IPG’s net revenue for Q4 2024 was $2.4 billion, an organic year-on-year decrease of 1.8%, with net income of $344.5 million.

For the full year 2024, net revenue was $9.2 billion, representing organic growth of 0.2%, with net income of $689.5 million.

IPG reported $9.3 million in costs incurred related to the Omnicom/IPG deal and an increase in software and cloud-based expenses in Q4 2024.

For comparison, rival Publicis Groupe reported its strongest quarter of the year earlier this month with annual revenue growth of 5.8% and net revenues for Q4 up 6.3%.

WPP reports its results next week.

IPG’s buyer Omnicom does not report net revenues, but last week it reported 5.2% organic growth in 2024, with revenue of $15.7 billion and net income of $1.48 billion.

Omnicom’s growth for the fourth quarter was also 5.2%, with revenue of £4.3 billion ($5.3 billion).

At the time, Omnicom chairman and chief executive John Wren said the results showed the group is “incredibly well prepared” for its acquisition of IPG.

Omnicom reported that it spent $14.6m on acquisition transaction costs related to IPG in Q4 2024.