Interpublic Group has posted a total revenue, including billable expenses, of $2.9 billion in the fourth quarter.
The revenue before billable expenses was $2.4 billion, with organic decrease of -1.8%
The agency’s reported net income was $344.5 million.
The total revenue, including billable expenses, stands at $10.7 billion.
TCS has reported net income of $689.5 million.
Philippe Krakowsky, CEO of IPG: “Today we are reporting an organic revenue increase of 20 basis points for the full year 2024, along with adjusted EBITA margin in-line with our forecast of 16.6%. Our strong margin result reflects continued effective operating discipline by our teams, notwithstanding the challenges of the past year.
“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%.
“Given the rapid and ongoing evolution of our industry, we will be undertaking a program of accelerated business transformation this year, designed to enhance our offerings and drive significant structural expense savings. This blueprint includes improving operating efficiencies at a number of our agencies, strategic centralization of many corporate functions, speeding our progress on simplification and platforming in both corporate services and certain areas of client delivery, greater offshoring and nearshoring, as well as further improving real estate efficiency.
"We estimate that this program will lead to savings of approximately $250 million in calendar 2025 — net of reinvestment in our most advanced capabilities — at an equivalent cost, a significant portion of which will be non-cash. These actions allow us to target an adjusted EBITA margin for 2025 of 16.6%, despite the revenue challenges we are facing. We expect the significant return on these efforts will advance Interpublic’s go-forward standalone capabilities, and, further, allow us to become a part of the new Omnicom as the strongest possible company. It also bears mention that the benefits of this restructuring have limited overlap with the cost synergies identified as
part of the Omnicom acquisition.
“We believe the proposed acquisition will result in the industry’s most dynamic and well-resourced company. Our understanding of consumer behavior at every step of the marketing lifecycle will be deeper than any other provider, as will our capacity to invest in emerging technologies. Together, we will bring to market an unparalleled range of talented practitioners in every marketing and sales discipline, supported by exceptional technology, data, production, and commerce platforms, to unlock growth opportunities and measurable results for our clients and for the combined company
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