IPG Revenues Up 9.8% In Q1

IPG is the latest of the holding companies to announce its 2022 Q1 numbers. The New York-based agency posted first quarter net revenue of $2.23 billion ($A3.1 billion), an increase of 9.8 per cent compared to $2.03 billion ($A2.8 billion) in the first quarter of 2021.

During the quarter, IPG’s organic net revenue increase was 11.5 per cent, which was comprised of an organic net revenue increase of 12.2 per cent in the US and an increase of 10.2 per cent internationally.

First quarter 2022 total revenue, which includes billable expenses, of $2.57 billion ($A3.6 billion), increased by 13.8 per cent compared to $2.26 billion ($A3.1 billion) in 2021.

Highlights included:

Reported net revenue of $2.23 billion ($A3.1 billion), an increase of 9.8 per cent from a year ago, with organic net revenue growth of 11.5 per cent
Net income was $159.4 million ($A224 million) as reported
Adjusted EBITA before restructuring charges was $273.6 million ($A385 million) with 12.3 per cent margin on net revenue
Diluted EPS was $0.40 $A0.56) as reported and was $0.47 ($A0.66) as adjusted
Management highlights strong start to the year and updates expectations for full-year growth

Philippe Krakowsky (main photo), CEO of IPG, commented: “We are pleased to report a strong start to our year, with growth highlighted by increases across a broad range of geographies and client sectors. These results reflect the skill that our colleagues bring to their craft and the commitment they consistently demonstrate to our clients and in support of each other. A differentiator of our performance, in the quarter and over a period of many years, remains our ability to deliver marketing and media solutions that bring together award-winning creativity with best-in-class technology and data infrastructure. This combination is responsive to the evolving needs of modern marketers for more digital, precise, and data-informed thinking, as well as the kind of integrated programs that allow IPG to deliver higher-order business solutions.

“While macro uncertainty is still elevated as a result of geopolitical and public health issues, we recently refreshed our bottom-up outlook for the year with key clients and with our operating teams, and the tone of the business remains positive. As such, we are updating our outlook for the year, from the previously-announced expectation for 5 per cent organic revenue growth in 2022 to approximately six per cent, on this key metric. This would be an especially strong result, given that it compounds IPG’s outstanding multi-year growth stack. We are also re-iterating our expectation for adjusted EBITA margin of 16.6 per cent for the full year.

“We will continue to stay close to and support our people and our clients, remain disciplined in managing our operations, and maintain the strength of our balance sheet. Given our great talent, a highly relevant strategy and portfolio of offerings, and our strong commitment to client partners, we are well-positioned to enhance opportunity and value for the full range of our stakeholders.”

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ipg Philippe Krakowsky