IPG defies industry headwinds with robust Q2,H1 results
By Felicia Nwosu
Interpublic Group (IPG) reported a 3.6% decline in organic growth for the first quarter, beating analysts’ expectations despite ongoing client caution amid global trade tensions. The advertising holding company, which is preparing for a merger with rival Omnicom, posted total revenue of $2.3 billion and net revenue of $2 billion, alongside a net loss of $85.4 million due to a one-time pre-tax restructuring charge of $203.3 million.
CEO Philippe Krakowsky said the numbers reflect a performance that is in line with internal forecasts, noting that while there’s been no drastic pullback in marketing activity, clients are increasingly engaging in “scenario planning” to navigate the possible ripple effects of disrupted global commerce.
“Clients are weighing their options as trade policies evolve and are actively preparing for a range of outcomes,” Krakowsky said during an analyst briefing. “The pace and unpredictability of change have pushed many into planning mode, evaluating where and how to invest.”
He added that although the true impact of the geopolitical and economic shifts is still unfolding, the company remains in close contact with clients to help guide them through decisions related to media channels, budget allocation, and campaign strategies.
Despite the looming challenges, Krakowsky emphasized IPG’s readiness to weather any potential downturn. He highlighted the company’s history of resilience, lean operating model, and its ability to quickly adapt to fluctuating economic conditions.
The merger with Omnicom, which will create the largest advertising group globally, is expected to unlock more value than initially projected, with Krakowsky noting that most of IPG’s internal changes are complementary to the identified integration synergies.
Notably, the company’s Mediabrands network, Deutsch, Golin, and data-driven marketing firm Acxiom delivered standout performances, helping to offset the drag from three significant client losses in 2024 that had previously been flagged as a concern.
IPG also made headway on its internal transformation, focused on streamlining operations and expanding capabilities in production and analytics through centralized hubs of expertise. These changes, according to the company, will better position the post-merger entity to meet evolving client needs.
With this new outlook, it is certain that IPG maintained its full-year forecast of an organic revenue decline between 1% and 2%, citing ongoing economic uncertainty but reaffirming confidence in its strategic direction and flexible operating model.
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