Ad holdco IPG reports lower revenue amid client shifts, sees progress ahead of Omnicom takeover

Interpublic Group, one of the world’s largest advertising holding companies, reported a decline in organic revenue in the second quarter as client shifts from the prior year continued to weigh on results, even as the company pointed to underlying improvements and strong performance in key practices.

Read more: IPG Mediabrands clocks ₹16.7K cr in India billings for 2024: COMvergence Report

The company posted total revenue of $2.5 billion, including billable expenses, for the quarter ended June 30. Revenue before billable expenses, or net revenue, was $2.2 billion, reflecting a 3.5 percent organic decline from the prior year, driven by account activity in 2024.

Net income for the period was $162.5 million, which included $88.4 million in after-tax expenses tied to previously announced strategic restructuring efforts. Interpublic reported a diluted loss per share of 44 cents, while adjusted diluted earnings per share came in at 75 cents.

Adjusted EBITA before restructuring charges and deal costs reached $393.7 million, with a margin of 18.1 percent on net revenue.

“Organic revenue was in line with expectations, reflecting the impact of account activity in 2024,” Philippe Krakowsky, Interpublic’s chief executive, said in a statement. “Underlying growth in the quarter showed sequential improvement against those headwinds, with strong performance at our media and healthcare practice areas. We also saw growth in our sports marketing and public relations disciplines. Our adjusted Q2 margin was very strong due to significant progress on our program of strategic transformation, as well as the benefit of improving operating performance at our two largest units.”

Despite the revenue decline, the company reiterated its outlook for a full-year organic net revenue decrease of 1 to 2 percent and said it expects to drive adjusted EBITA margins “significantly ahead” of the previously shared 16.6 percent target for 2025, citing structural and operational improvements.

“Given our first-half results, client activity that remains largely resilient in the face of macro uncertainty, and the work we are doing to further develop our portfolio in growth areas such as media trading, commerce and data-driven marketing, we remain on track against the full-year target for an organic net revenue decrease of 1 to 2%,” Krakowsky said. “At this level, we expect to drive adjusted 2025 EBITA margin significantly ahead of the 16.6% we had previously shared, reflecting both structural and operating improvement.”

Read more: IPG launches Agentic Systems to help brands navigate the commerce ecosystem

Interpublic has been investing in technology and artificial intelligence to enhance its capabilities as it navigates a shifting advertising landscape and increasing client demand for measurable business outcomes.

“Our organization continues to evolve as we connect more of our capabilities to the strong foundational elements of data and technology,” Krakowsky said. “This includes continued progress in embedding artificial intelligence in our workflows and products, allowing us to deliver the benefits of our centers of excellence and platforms to clients through solutions that drive marketing and sales outcomes for their businesses. With these investments in our people and our capabilities, we are seeing positive new business performance.”

Looking ahead, Interpublic said it remains on track to close its planned merger with Omnicom, another global advertising giant, in the second half of the year.

“Looking ahead to our combination with Omnicom, we remain on track to see the transaction completed in the second half of this year,” Krakowsky said. “The level of interest and support from clients continues to be strong, and there is enthusiasm on the part of practitioners across both organizations to unlock the value that the combination will create. By bringing together our deep pools of talent, complementary capabilities, and geographic strengths, we can create an organization with unmatched ability to deliver business outcomes for marketers in every industry sector, around the world.”

The combination, if completed, will reshape the advertising industry, creating an entity with deeper resources in media, data, and creative services at a time when marketers are demanding efficiency and results-driven campaigns in an uncertain economic environment.

Read more: "There's a genuine sense of anticipation": Omnicom CEO John Wren says IPG merger is on track as optimism grows among clients and shareholders

SUMMARY

Revenue

Second quarter 2025: Total revenue, which includes billable expenses, was $2.54 billion, compared to $2.71 billion in the second quarter of 2024.

Revenue before billable expenses ("net revenue") was $2.17 billion, a reported decrease of 6.6% from the second quarter of 2024, which reflects a net decrease due to strategic dispositions of 3.4%, an organic decrease of 3.5%, and a positive impact of foreign currency translation of 0.3%, compared to the second quarter of 2024.

First half 2025: Total revenue, which includes billable expenses, was $4.86 billion, compared to $5.21 billion in the first half of 2024.

Revenue before billable expenses ("net revenue") was $4.17 billion, a reported decrease of 7.6% from the first half of 2024, which reflects a net decrease due to strategic dispositions of 3.6%, an organic decrease of 3.6%, and a negative impact of foreign currency translation of 0.4%, compared to the first half of 2024.