Holding group IPG is forecasting a 1-2% drop in organic revenue for 2025, citing more “sizeable client losses” than anticipated ahead of its imminent takeover by rival US firm Omnicom.
In total, the company’s net revenue for Q4 2024 was £1.9 billion, marking an organic year-on-year decrease of 1.8%. The firm posted a net income of £275.6 million.
For the full year 2024, IPG registered net revenue of £7.3 billion, representing year-on-year organic growth of 0.2%, with a net income of £553 million. It also incurred around £7.4 million in costs related to the approaching takeover and a rise in software and cloud-based costs in Q4.
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According to Campaign, CEO Philipp Krakowsky revealed in an investor call yesterday (12 February), that a series of restructures would be actioned within IPG to prepare it for the merger. Set to directly affect its agency portfolio, the move is expected to save around £200 million.
“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”, Krakowsky said.
“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%.”
