IPG Announces Fourth Quarter and Full Year 2024 Results
IPG reported its Q4 and full-year 2024 results, with Q4 total revenue of $2.9B and net revenue of $2.4B, showing an organic decrease of -1.8%. Full-year total revenue reached $10.7B with net revenue of $9.2B, showing minimal organic growth of 0.2%.
The company announced a business transformation program targeting $250M in savings for 2025, with plans to improve operating efficiencies, centralize corporate functions, and enhance real estate efficiency. Despite revenue challenges, IPG aims to maintain an adjusted EBITA margin of 16.6% for 2025.
Q4 2024 diluted EPS was $0.92 as reported and $1.11 as adjusted, while full-year diluted EPS was $1.83 as reported and $2.77 as adjusted. The company forecasts an organic revenue decrease of 1-2% for the upcoming year, citing significant client losses in the media trading environment.
IPG ha riportato i risultati del quarto trimestre e dell'intero anno 2024, con un fatturato totale nel Q4 di 2,9 miliardi di dollari e un fatturato netto di 2,4 miliardi di dollari, mostrando una diminuzione organica del -1,8%. Il fatturato totale dell'anno intero ha raggiunto 10,7 miliardi di dollari, con un fatturato netto di 9,2 miliardi di dollari, mostrando una crescita organica minima dello 0,2%.
L'azienda ha annunciato un programma di trasformazione aziendale mirato a risparmiare 250 milioni di dollari entro il 2025, con piani per migliorare l'efficienza operativa, centralizzare le funzioni aziendali e ottimizzare l'efficienza immobiliare. Nonostante le sfide legate ai ricavi, IPG punta a mantenere un margine EBITA rettificato del 16,6% per il 2025.
L'EPS diluito del Q4 2024 è stato di 0,92 dollari come riportato e 1,11 dollari come rettificato, mentre l'EPS diluito dell'anno intero è stato di 1,83 dollari come riportato e 2,77 dollari come rettificato. L'azienda prevede una diminuzione organica dei ricavi dell'1-2% per l'anno a venire, citando significative perdite di clienti nell'ambiente del trading media.
IPG informó sobre sus resultados del cuarto trimestre y del año completo 2024, con ingresos totales en el Q4 de 2,9 mil millones de dólares y ingresos netos de 2,4 mil millones de dólares, mostrando una disminución orgánica del -1,8%. Los ingresos totales del año completo alcanzaron 10,7 mil millones de dólares, con ingresos netos de 9,2 mil millones de dólares, mostrando un crecimiento orgánico mínimo del 0,2%.
La compañía anunció un programa de transformación empresarial con el objetivo de ahorrar 250 millones de dólares para 2025, con planes para mejorar la eficiencia operativa, centralizar funciones corporativas y aumentar la eficiencia inmobiliaria. A pesar de los desafíos de ingresos, IPG tiene como objetivo mantener un margen EBITA ajustado del 16,6% para 2025.
El EPS diluido del Q4 2024 fue de 0,92 dólares según lo informado y de 1,11 dólares ajustado, mientras que el EPS diluido del año completo fue de 1,83 dólares según lo informado y de 2,77 dólares ajustado. La empresa prevé una disminución orgánica de los ingresos del 1-2% para el próximo año, citando pérdidas significativas de clientes en el entorno de comercio de medios.
IPG는 2024년 4분기 및 전체 연도 결과를 발표했습니다. 4분기 총 수익은 29억 달러, 순수익은 24억 달러로, 유기적인 감소율은 -1.8%를 기록했습니다. 전체 연도 총 수익은 107억 달러, 순수익은 92억 달러에 달하며, 유기적인 성장률은 0.2%로 미미하였습니다.
회사는 2025년까지 2억 5천만 달러의 절감을 목표로 하는 비즈니스 전환 프로그램을 발표했으며, 운영 효율성을 개선하고, 기업 기능을 중앙 집중화하며, 부동산 효율성을 향상시킬 계획입니다. 수익의 어려움에도 불구하고, IPG는 2025년을 위해 조정된 EBITA 마진을 16.6%로 유지할 계획입니다.
2024년 4분기 희석 EPS는 보고된 바에 따르면 0.92달러, 조정된 바에 따르면 1.11달러였으며, 전체 연도 희석 EPS는 보고된 바에 따르면 1.83달러, 조정된 바에 따르면 2.77달러였습니다. 회사는 미디어 거래 환경에서의 고객 손실을 언급하며 다가오는 해에 대해 1-2%의 유기적 수익 감소를 예상하고 있습니다.
IPG a publié ses résultats du 4e trimestre et de l'année 2024, avec un chiffre d'affaires total de 2,9 milliards de dollars pour le Q4 et un chiffre d'affaires net de 2,4 milliards de dollars, montrant une diminution organique de -1,8%. Le chiffre d'affaires total pour l'année a atteint 10,7 milliards de dollars avec un chiffre d'affaires net de 9,2 milliards de dollars, montrant une croissance organique minimale de 0,2%.
L'entreprise a annoncé un programme de transformation visant à réaliser des économies de 250 millions de dollars d'ici 2025, avec des plans pour améliorer l'efficacité opérationnelle, centraliser les fonctions d'entreprise et optimiser l'efficacité immobilière. Malgré les défis liés aux revenus, IPG vise à maintenir une marge EBITA ajustée de 16,6% pour 2025.
L'EPS dilué du Q4 2024 était de 0,92 dollar comme rapporté et de 1,11 dollar ajusté, tandis que l'EPS dilué de l'année entière était de 1,83 dollar comme rapporté et de 2,77 dollars ajusté. L'entreprise prévoit une diminution organique des revenus de 1 à 2% pour l'année à venir, citant des pertes significatives de clients dans l'environnement du trading des médias.
IPG hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht, mit einem Gesamtumsatz im Q4 von 2,9 Milliarden Dollar und einem Nettoumsatz von 2,4 Milliarden Dollar, was einen organischen Rückgang von -1,8% zeigt. Der Gesamtumsatz für das gesamte Jahr erreichte 10,7 Milliarden Dollar, mit einem Nettoumsatz von 9,2 Milliarden Dollar, was ein minimales organisches Wachstum von 0,2% zeigt.
Das Unternehmen kündigte ein Transformationsprogramm an, das Einsparungen von 250 Millionen Dollar bis 2025 anstrebt, mit Plänen zur Verbesserung der Betriebseffizienz, zur Zentralisierung der Unternehmensfunktionen und zur Steigerung der Effizienz im Immobilienbereich. Trotz der Umsatzherausforderungen strebt IPG an, die angepasste EBITA-Marge von 16,6% für 2025 aufrechtzuerhalten.
Das verwässerte EPS für das 4. Quartal 2024 betrug 0,92 Dollar laut Berichterstattung und 1,11 Dollar nach Anpassung, während das verwässerte EPS für das gesamte Jahr 1,83 Dollar laut Berichterstattung und 2,77 Dollar nach Anpassung betrug. Das Unternehmen prognostiziert einen organischen Rückgang des Umsatzes von 1-2% für das kommende Jahr und verweist auf erhebliche Kundenverluste im Medienhandelsumfeld.
- Full-year 2024 adjusted EBITA margin maintained at 16.6%
- Announced transformation program targeting $250M in savings for 2025
- Strong Q4 and early 2025 new business momentum
- Q4 2024 organic revenue decreased by 1.8%
- Forecast of 1-2% organic revenue decrease for 2025
- Significant client losses in media trading environment
- $232.1M goodwill impairment charge in Q3 2024
Insights
The Q4 and FY2024 results present a complex picture of IPG's financial health and strategic positioning. The organic revenue decline of -1.8% in Q4, coupled with barely positive full-year growth of 0.2%, signals significant operational challenges. The projected organic revenue decline of -1% to -2% for 2025 reflects substantial client losses, particularly in media trading.
The announced $250 million cost-savings program is strategically timed, focusing on operational efficiencies, corporate function centralization, and real estate optimization. This transformation initiative appears designed not only to protect margins but to strengthen IPG's position ahead of the Omnicom merger. The maintenance of a 16.6% EBITA margin target despite revenue headwinds demonstrates strong cost management capabilities.
Notable financial metrics include:
- Strong cash position of
$2.19 billion , though down from$2.39 billion year-over-year - Reduced total debt to
$2.96 billion from$3.20 billion - Q4 adjusted earnings per share of
$1.11 , down from$1.18 in 2023
The
The restructuring program's overlap with Omnicom merger synergies suggests additional cost optimization potential post-merger, while the focus on advanced capabilities reinvestment indicates a strategic balance between cost control and competitive positioning.
New York, NY, Feb. 12, 2025 (GLOBE NEWSWIRE) --
FOURTH QUARTER
- Total revenue, including billable expenses, was
$2.9 billion
- Revenue before billable expenses ("net revenue") was
$2.4 billion , with organic decrease of -1.8%
- Reported net income was
$344.5 million
- Adjusted EBITA before restructuring charges and deal costs was
$591.2 million with margin of24.3% on revenue before billable expenses
- Diluted earnings per share of
$0.92 as reported and$1.11 as adjusted
FULL YEAR
- Total revenue, including billable expenses, was
$10.7 billion
- Revenue before billable expenses ("net revenue") was
$9.2 billion , with organic growth of0.2%
- Reported net income was
$689.5 million
- Adjusted EBITA before restructuring charges and deal costs was
$1.5 billion , with margin of16.6% on revenue before billable expenses
- Diluted earnings per share of
$1.83 as reported and$2.77 as adjusted
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
“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
“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
“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.”
Summary
Revenue
- Fourth quarter 2024: Total revenue, which includes billable expenses, was
$2.86 billion , compared$3.02 billion in the fourth quarter of 2023. - Revenue before billable expenses ("net revenue") was
$2.43 billion , a reported decrease of5.9% compared to the fourth quarter of 2023. - The organic decrease of net revenue was
1.8% from the fourth quarter of 2023. - Full year 2024: Total revenue, which includes billable expenses, was
$10.69 billion compared to$10.89 billion for the full year 2023. - Revenue before billable expenses ("net revenue") was
$9.19 billion , a reported decrease of2.3% compared to the full year 2023. - The organic increase of net revenue was
0.2% from the full year 2023.
Operating Results
- In the fourth quarter of 2024, operating income was
$567.9 million , including a reversal of restructuring charges of$(6.4) million and deals costs of$9.3 million , compared to$606.8 million , including restructuring charges of$0.8 million , for the same period in 2023. Adjusted EBITA before the reversal of restructuring charges and deal costs was$591.2 million in the fourth quarter of 2024, compared to$628.5 million for the same period in 2023. Fourth quarter 2024 margin of adjusted EBITA before restructuring charges and deal costs was24.3% on revenue before billable expenses. - Operating income for the full year 2024 was
$1.20 billion , including a reversal of restructuring charges of$(5.0) million and deal costs of$9.3 million , compared to$1.48 billion , including restructuring charges of$0.1 million , for the same period in 2023. Operating results for the full year 2024 include non-cash goodwill impairment of$232.1 million in the third quarter related to the write down of the carrying value of digital specialist agencies to fair value. Adjusted EBITA before restructuring charges and deals costs was$1.52 billion for the full year 2024, compared to$1.57 billion for the same period in 2023. Full year 2024 margin of adjusted EBITA before restructuring charges and deal costs was16.6% on revenue before billable expenses. - Refer to reconciliations in the appendix within this press release for further detail.
Net Results
- In the fourth quarter of 2024, the Income tax provision was
$125.7 million on income before income taxes of$483.3 million . - Fourth quarter 2024 net income available to IPG common stockholders was
$344.5 million , resulting in earnings of$0.93 per basic share and$0.92 per diluted share, compared to$1.21 and$1.21 , respectively, for the same period in 2023. Adjusted earnings were$1.11 per diluted share as adjusted for after-tax amortization of acquired intangibles of$16.2 million , the after-tax reversal of restructuring charges of$4.8 million , after-tax deal costs of$8.3 million and an after-tax loss of$51.3 million on the sales of businesses. This compares to adjusted earnings of$1.18 per diluted share a year ago. - Income tax provision for the full year 2024 was
$333.9 million on income before income taxes of$1.05 billion . - Full year 2024 net income available to IPG common stockholders was
$689.5 million , resulting in earnings of$1.84 per basic share and$1.83 per diluted share, compared to$2.86 and$2.85 , respectively, for the same period in 2023. Net income and earnings per share for the full year 2024 include after-tax expense of$211.4 million related to the non-cash charge to write down goodwill. Adjusted earnings were$2.77 per diluted share as adjusted for after-tax amortization of acquired intangibles of$65.0 million , after-tax impairment of goodwill of$211.4 million , the after-tax reversal of restructuring charges of$3.7 million , after-tax deal costs of$8.3 million and an after-tax loss of$74.2 million on the sales of businesses. Full year 2023 basic and diluted earnings per share, both as reported and adjusted, include a positive impact of$0.17 related to the settlement of U.S. Federal Income Tax Audits for the years 2017-2018. Adjusted earnings were$2.99 per diluted share a year ago. - Refer to reconciliations in the appendix within this press release for further detail.
Operating Results
Revenue
Revenue before billable expenses of
Revenue before billable expenses of
Operating Expenses
For the fourth quarter of 2024, total operating expenses, excluding billable expenses, restructuring charges, deal costs and amortization of acquired intangibles decreased by
Staff cost ratio, which is total salaries and related expenses as a percentage of revenue before billable expenses, decreased to
For the fourth quarter 2024 office and other direct expenses as a percentage of revenue before billable expenses increased to
Selling, general and administrative expenses increased by
Depreciation and amortization expense decreased by
During the full year 2024, we recorded goodwill impairment of
During the fourth quarter and year ended December 31, 2024, restructuring charges represent adjustments to our restructuring actions taken in 2020 and 2022, and primarily consist of a reversal related to the early termination of certain property leases. During the fourth quarter and year ended December 31, 2023, restructuring charges represent adjustments to our restructuring actions taken in 2020 and 2022.
Non-Operating Results and Tax
Net interest expense increased by
Other Expense, net was
The income tax provision in the fourth quarter of 2024 was
The effective tax rate for the fourth quarter of 2024 was
Balance Sheet
At December 31, 2024, cash and cash equivalents totaled
Share Repurchase Program
During the full year 2024, the Company repurchased 7.3 million shares of its common stock at an aggregate cost of
Common Stock Dividend
During the fourth quarter of 2024, the Company declared and paid a common stock cash dividend of
For further information regarding the Company's financial results as well as certain non-GAAP measures including organic revenue before billable expenses change, adjusted EBITA, adjusted EBITA before restructuring charges and adjusted earnings per diluted share, and the reconciliations thereof, please refer to the appendix within this press release and our Investor Presentation filed on Form 8-K herewith and available on our website, www.interpublic.com.
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About Interpublic
Interpublic (NYSE: IPG) (www.interpublic.com) is a values-based, data-fueled, and creatively-driven provider of marketing solutions. Home to some of the world’s best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of
# # #
Contact Information
Tom Cunningham
(Press)
(212) 704-1326
Jerry Leshne
(Analysts, Investors)
(212) 704-1439
Cautionary Statement
This release contains forward-looking statements. Statements in this report that are not historical facts, including statements regarding goals, intentions, and expectations as to future plans, trends, events, or future results of operations or financial position, constitute forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “intend,” “could,” “would,” “should,” “estimate,” “will likely result” or comparable terminology are intended to identify forward-looking statements. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results and outcomes to differ materially from those reflected in the forward-looking statements, and are subject to change based on a number of factors, including those outlined under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K, and our other filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
On December 8, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Omnicom Group Inc. (“Omnicom”), pursuant to which a merger subsidiary of Omnicom will merge with and into IPG, with IPG surviving the merger as a direct wholly owned subsidiary of Omnicom. The forward-looking statements in this report, other than the statements regarding the proposed merger transaction with Omnicom, do not assume the consummation of the proposed transactions unless specifically stated otherwise.
Actual results and outcomes could differ materially for a variety of reasons, including, among others:
- risks relating to the pending merger transaction with Omnicom, including: the occurrence of any event, change, or other circumstances that could delay or prevent closing of the proposed transactions with Omnicom, or give rise to the termination of the Merger Agreement; unanticipated costs or restrictions resulting from regulatory review of the merger transactions; restrictions on our business activities imposed by the Merger Agreement; costs incurred in connection with the merger and subsequent integration with Omnicom; litigation risks relating to the merger; any failure to integrate successfully the business and operations of Omnicom and IPG in the expected time frame, to realize all of the anticipated benefits of the combination or to effectively manage the combined companies’ expanded operations; and any merger-related loss of clients, service providers, vendors, or other business counterparties;
- the effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition;
- our ability to attract new clients and retain existing clients; including as a result of the announced merger transaction with Omnicom;
- our ability to retain and attract key employees; including as a result of the announced merger transaction with Omnicom;
- unanticipated changes in the competitive environment in the marketing and communications services industry, including risks and challenges from new or developing technologies such as artificial intelligence (AI);
- risks associated with the effects of global, national and regional economic and political conditions, including counterparty risks and fluctuations in interest rates, inflation rates and currency exchange rates;
- the economic or business impact of military or political conflict in key markets; or any significant market disruptions as a result of factors like public health crises;
- developments from changes in the regulatory and legal environment for advertising and marketing services companies around the world, including laws and regulations related to data protection and consumer privacy;
- the impact on our business as a result of general or directed cybersecurity events; and
- risks associated with assumptions we make in connection with our critical accounting estimates, including changes in assumptions associated with any effects of a challenging economy, and potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments.
Investors should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business, including those outlined under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K, and our other SEC filings. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update or revise publicly any of them in light of new information, future events, or otherwise.
ADDITIONAL INFORMATION ABOUT THE TRANSACTION WITH OMNICOM AND WHERE TO FIND IT
In connection with the proposed transaction, IPG and Omnicom have filed a joint proxy statement with the SEC on January 17, 2025 and Omnicom has filed with the SEC a registration statement on Form S-4 on January 17, 2025 (File No.333-284358) (“Form S-4”) that includes the joint proxy statement of IPG and Omnicom and that also constitutes a prospectus of Omnicom. Each of IPG and Omnicom may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that IPG or Omnicom may file with the SEC. The definitive joint proxy statement/prospectus have been mailed to stockholders of IPG and Omnicom. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN AND MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT IPG, OMNICOM AND THE PROPOSED TRANSACTION.
Investors and security holders are able to obtain free copies of the registration statement, joint proxy statement/prospectus and other documents containing important information about IPG, Omnicom and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the registration statement, joint proxy statement/prospectus and other documents (if and when available) filed with the SEC by IPG may be obtained free of charge on IPG’s website at https://investors.interpublic.com/sec-filings/financial-reports or, alternatively, by directing a request by mail to IPG’s Corporate Secretary at The Interpublic Group of Companies, Inc., 909 Third Avenue, New York, NY 10022, Attention: SVP & Secretary. Copies of the registration statement and joint proxy statement/prospectus and other documents (if and when available) filed with the SEC by Omnicom may be obtained free of charge on Omnicom’s website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx or, alternatively, by directing a request by mail to Omnicom’s Corporate Secretary at Omnicom Group Inc., 280 Park Avenue, New York, New York 10017.
PARTICIPANTS IN THE SOLICITATION
IPG, Omnicom, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of IPG, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in IPG’s Annual Report on Form 10-K, including under the heading “Executive Officers of the Registrant,” and proxy statement for IPG’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, including under the headings “Board Composition,” “Non-Management Director Compensation,” “Executive Compensation” and “Outstanding Shares and Ownership of Common Stock.” To the extent holdings of IPG common stock by the directors and executive officers of IPG have changed from the amounts reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 (“Form 3”), Statements of Changes in Beneficial Ownership on Form 4 (“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”), subsequently filed by IPG’s directors and executive officers with the SEC. Information about the directors and executive officers of Omnicom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Omnicom’s Annual Report on Form 10-K, including under the heading “Information About Our Executive Officers,” and proxy statement for Omnicom’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 28, 2024, including under the headings “Executive Compensation,” “Omnicom Board of Directors,” “Directors’ Compensation for Fiscal Year 2023” and “Stock Ownership Information.” To the extent holdings of Omnicom common stock by the directors and executive officers of Omnicom have changed from the amounts reflected therein, such changes have been or will be reflected on Forms 3, Forms 4 or Forms 5, subsequently filed by Omnicom’s directors and executive officers with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the registration statement and joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the registration statement and joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein from IPG or Omnicom using the sources indicated above.
APPENDIX
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS FOURTH QUARTER REPORT 2024 AND 2023 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Three Months Ended December 31, | ||||||
| 2024 | 2023 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue Before Billable Expenses | | | (5.9) % | |||
| Billable Expenses | 422.1 | 437.1 | (3.4) % | |||
| Total Revenue | 2,857.0 | 3,023.3 | (5.5) % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 1,430.4 | 1,536.9 | 6.9 % | |||
| Office and Other Direct Expenses | 335.5 | 352.9 | 4.9 % | |||
| Billable Expenses | 422.1 | 437.1 | 3.4 % | |||
| Cost of Services | 2,188.0 | 2,326.9 | 6.0 % | |||
| Selling, General and Administrative Expenses | 44.1 | 23.5 | (87.7) % | |||
| Depreciation and Amortization | 63.4 | 65.3 | 2.9 % | |||
| Restructuring Charges | (6.4) | 0.8 | > | |||
| Total Operating Expenses | 2,289.1 | 2,416.5 | 5.3 % | |||
| Operating Income | 567.9 | 606.8 | (6.4) % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (54.3) | (61.4) | ||||
| Interest Income | 32.2 | 43.5 | ||||
| Other (Expense) Income, Net | (62.5) | 35.0 | ||||
| Total (Expenses) and Other Income | (84.6) | 17.1 | ||||
| Income Before Income Taxes | 483.3 | 623.9 | ||||
| Provision for Income Taxes | 125.7 | 155.3 | ||||
| Income of Consolidated Companies | 357.6 | 468.6 | ||||
| Equity in Net Income of Unconsolidated Affiliates | 0.7 | 3.0 | ||||
| Net Income | 358.3 | 471.6 | ||||
| Net Income Attributable to Non-controlling Interests | (13.8) | (8.4) | ||||
| Net Income Available to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 372.3 | 381.4 | ||||
| Diluted | 375.4 | 383.4 | ||||
| Dividends Declared Per Common Share | | | ||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS ANNUAL REPORT 2024 AND 2023 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Twelve Months Ended December 31, | ||||||
| 2024 | 2023 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue Before Billable Expenses | | | (2.3) % | |||
| Billable Expenses | 1,504.1 | 1,488.7 | 1.0 % | |||
| Total Revenue | 10,691.7 | 10,889.3 | (1.8) % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 6,024.8 | 6,243.9 | 3.5 % | |||
| Office and Other Direct Expenses | 1,343.1 | 1,342.5 | 0.0 % | |||
| Billable Expenses | 1,504.1 | 1,488.7 | (1.0) % | |||
| Cost of Services | 8,872.0 | 9,075.1 | 2.2 % | |||
| Selling, General and Administrative Expenses | 130.5 | 67.2 | (94.2) % | |||
| Depreciation and Amortization | 258.9 | 264.3 | 2.0 % | |||
| Impairment of Goodwill | 232.1 | 0.0 | >(100)% | |||
| Restructuring Charges | (5.0) | 0.1 | > | |||
| Total Operating Expenses | 9,488.5 | 9,406.7 | (0.9) % | |||
| Operating Income | 1,203.2 | 1,482.6 | (18.8) % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (229.9) | (225.6) | ||||
| Interest Income | 151.7 | 140.8 | ||||
| Other (Expense) Income, Net | (75.9) | 10.2 | ||||
| Total (Expenses) and Other Income | (154.1) | (74.6) | ||||
| Income Before Income Taxes | 1,049.1 | 1,408.0 | ||||
| Provision for Income Taxes | 333.9 | 291.2 | ||||
| Income of Consolidated Companies | 715.2 | 1,116.8 | ||||
| Equity in Net Income of Unconsolidated Affiliates | 0.5 | 1.3 | ||||
| Net Income | 715.7 | 1,118.1 | ||||
| Net Income Attributable to Non-controlling Interests | (26.2) | (19.7) | ||||
| Net Income Attributable to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 375.2 | 384.1 | ||||
| Diluted | 377.7 | 385.9 | ||||
| Dividends Declared Per Common Share | | | ||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||
| Three Months Ended December 31, 2024 | |||||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Deal Costs1 | Net Losses on Business Dispositions2 | Adjusted Results (Non-GAAP) | ||||||
| Operating Income and Adjusted EBITA before Restructuring Charges and Deal Costs 3 | | | | | | ||||||
| Total (Expenses) and Other Income 4 | (84.6) | | (26.8) | ||||||||
| Income Before Income Taxes | 483.3 | (20.4) | 6.4 | (9.3) | (57.8) | 564.4 | |||||
| Provision for Income Taxes | 125.7 | 4.2 | (1.6) | 1.0 | 6.5 | 135.8 | |||||
| Effective Tax Rate | 26.0 % | 24.1 % | |||||||||
| Equity in Net Income of Unconsolidated Affiliates | 0.7 | 0.7 | |||||||||
| Net Income Attributable to Non-controlling Interests | (13.8) | (13.8) | |||||||||
| Net Income Available to IPG Common Stockholders | | | | | | | |||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 372.3 | 372.3 | |||||||||
| Dilutive effect of stock options and restricted shares | 3.1 | 3.1 | |||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 375.4 | 375.4 | |||||||||
| Earnings Per Share Available to IPG Common Stockholders5: | |||||||||||
| Basic | | | | | | | |||||
| Diluted | | | | | | | |||||
| 1 Consists of deal costs recorded in the fourth quarter of 2024 related to the planned acquisition of IPG by Omnicom. | |||||||||||
| 2 Primarily relates to a net loss as a result of a completed disposition and the classification of certain assets as held for sale. | |||||||||||
| 3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges and Deal Costs on page A5 in the appendix. | |||||||||||
| 4 Consists of non-operating expenses including interest expense, interest income and other income (expense), net. | |||||||||||
| 5 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||||
| Twelve Months Ended December 31, 2024 | |||||||||||||
| As Reported | Amortization of Acquired Intangibles | Impairment of Goodwill | Restructuring Charges | Deal Costs1 | Net Losses on Businesses Dispositions2 | Adjusted Results (Non-GAAP) | |||||||
| Operating Income and Adjusted EBITA before Restructuring Charges and Deal Costs 3 | | | | | | | |||||||
| Total (Expenses) and Other Income 4 | (154.1) | | (89.9) | ||||||||||
| Income Before Income Taxes | 1,049.1 | (81.8) | (232.1) | 5.0 | (9.3) | (64.2) | 1,431.5 | ||||||
| Provision for Income Taxes | 333.9 | 16.8 | 20.7 | (1.3) | 1.0 | (10.0) | 361.1 | ||||||
| Effective Tax Rate | 31.8 % | 25.2 % | |||||||||||
| Equity in Net Income of Unconsolidated Affiliates | 0.5 | 0.5 | |||||||||||
| Net Income Attributable to Non-controlling Interests | (26.2) | (26.2) | |||||||||||
| Net Income Available to IPG Common Stockholders | | | | | | | | ||||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 375.2 | 375.2 | |||||||||||
| Dilutive effect of stock options and restricted shares | 2.5 | 2.5 | |||||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 377.7 | 377.7 | |||||||||||
| Earnings Per Share Available to IPG Common Stockholders5: | |||||||||||||
| Basic | | | | | | | | ||||||
| Diluted | | | | | | | | ||||||
| 1 Consists of deal costs recorded in the fourth quarter of 2024 related to the planned acquisition of IPG by Omnicom. | |||||||||||||
| 2 Primarily relates to a net loss as a result of a completed disposition and the classification of certain assets as held for sale. | |||||||||||||
| 3 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges and Deal Costs on page A5 in the appendix. | |||||||||||||
| 4 Consists of non-operating expenses including interest expense, interest income and other expense, net. | |||||||||||||
| 5 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions) (UNAUDITED) | |||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Revenue Before Billable Expenses | | | | | |||
| Non-GAAP Reconciliation: | |||||||
| Net Income Available to IPG Common Stockholders | | | | | |||
| Add Back: | |||||||
| Provision for Income Taxes | 125.7 | 155.3 | 333.9 | 291.2 | |||
| Subtract: | |||||||
| Total (Expenses) and Other Income | (84.6) | 17.1 | (154.1) | (74.6) | |||
| Equity in Net Income of Unconsolidated Affiliates | 0.7 | 3.0 | 0.5 | 1.3 | |||
| Net Income Attributable to Non-controlling Interests | (13.8) | (8.4) | (26.2) | (19.7) | |||
| Operating Income | 567.9 | 606.8 | 1,203.2 | 1,482.6 | |||
| Add Back: | |||||||
| Amortization of Acquired Intangibles | 20.4 | 20.9 | 81.8 | 84.0 | |||
| Impairment of Goodwill | — | — | 232.1 | — | |||
| Adjusted EBITA | 588.3 | 627.7 | 1,517.1 | 1,566.6 | |||
| Adjusted EBITA Margin on Revenue before Billable Expenses % | 24.2 % | 24.3 % | 16.5 % | 16.7 % | |||
| Restructuring Charges | (6.4) | 0.8 | (5.0) | 0.1 | |||
| Deal Costs | 9.3 | — | 9.3 | — | |||
| Adjusted EBITA before Restructuring Charges & Deal Costs | | | | | |||
| Adjusted EBITA before Restructuring Charges & Deal Costs Margin on Revenue before Billable Expenses % | 24.3 % | 24.3 % | 16.6 % | 16.7 % | |||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||
| Three Months Ended December 31, 2023 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Gain on Business Dispositions1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | | | | | |||||
| Total (Expenses) and Other Income 3 | 17.1 | | (19.7) | ||||||
| Income Before Income Taxes | 623.9 | (20.9) | (0.8) | 36.8 | 608.8 | ||||
| Provision for Income Taxes | 155.3 | 4.2 | 0.2 | (7.4) | 152.3 | ||||
| Effective Tax Rate | 24.9 % | 25.0 % | |||||||
| Equity in Net Income of Unconsolidated Affiliates | 3.0 | 3.0 | |||||||
| Net Income Attributable to Non-controlling Interests | (8.4) | (8.4) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 381.4 | 381.4 | |||||||
| Dilutive effect of stock options and restricted shares | 2.0 | 2.0 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 383.4 | 383.4 | |||||||
| Earnings Per Share Available to IPG Common Stockholders 4,: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to a net gain as a result of a completed disposition and the classification of certain assets as held for sale. | |||||||||
| 2 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix. | |||||||||
| 3 Consists of non-operating expenses including interest expense, interest income and other income (expense), net. | |||||||||
| 4 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||
| Twelve Months Ended December 31, 2023 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Gain on Business Dispositions1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges 2 | | | | | |||||
| Total (Expenses) and Other Income 3 | (74.6) | | (91.0) | ||||||
| Income Before Income Taxes | 1,408.0 | (84.0) | (0.1) | 16.4 | 1,475.7 | ||||
| Provision for Income Taxes | 291.2 | 16.9 | (0.1) | (3.4) | 304.6 | ||||
| Effective Tax Rate | 20.7 % | 20.6 % | |||||||
| Equity in Net Income of Unconsolidated Affiliates | 1.3 | 1.3 | |||||||
| Net Income Attributable to Noncontrolling Interests | (19.7) | (19.7) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 384.1 | 384.1 | |||||||
| Dilutive effect of stock options and restricted shares | 1.8 | 1.8 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 385.9 | 385.9 | |||||||
| Earnings Per Share Available to IPG Common Stockholders 4, 5: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to a net gain as a result of a completed disposition and the classification of certain assets as held for sale, as well as a loss related to the sale of an equity investment. | |||||||||
| 2 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix. | |||||||||
| 3 Consists of non-operating expenses including interest expense, interest income and other expense, net. | |||||||||
| 4 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||
| 5 Basic and diluted earnings per share, both As Reported and Adjusted Results (Non-GAAP), include a positive impact of | |||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||
FAQ
What was IPG's Q4 2024 revenue and organic growth?
How much cost savings is IPG targeting in its 2025 transformation program?
What is IPG's organic revenue growth forecast for 2025?
What was IPG's adjusted EBITA margin for full-year 2024?
How much was IPG's goodwill impairment charge in 2024?
