Interpublic Group (IPG) has reported net revenues of US$2.0 billion for the first quarter of 2025, down 8.5%, with a 3.6% decline in organic net revenue attributed to prior-year client account activity. The company's total revenue, including billable expenses, sat at US$2.3 billion.

IPG recorded a net loss of US$85.4 million for the quarter, including a pre-tax expense of US$203.3 million related to strategic restructuring actions. Adjusted EBITA, before accounting for restructuring charges and deal costs, was US$186.5 million, with a margin of 9.3% on net revenue.

Diluted loss per share was reported at US$0.23, while adjusted earnings per share were US$0.33. Despite the overall revenue decrease, IPG's CEO, Philippe Krakowsky, highlighted growth at IPG Mediabrands, Deutsch, Golin, and Acxiom.

"Results in the first quarter were consistent with our expectations. As we previously indicated, account activity over the prior twelve-month period will weigh on this year, though that impact was lessened in the quarter by sound underlying performance, with notable growth at IPG Mediabrands, Deutsch and Golin, as well as growth at Acxiom. Financial discipline remained strong, evidenced by our 9.3% adjusted EBITA margin in our smallest seasonal quarter," he said.

The company is undergoing a transformational restructuring aimed at enhancing service offerings and consolidating functions into centres of excellence, ahead of its anticipated merger with Omnicom in the second half of the year.

"We also began the year with significant progress on the transformational restructuring of our business - driving change within corporate functions and enhancing our service offerings in areas such as production and analytics through greater consolidation into centers of excellence. The long-term financial benefits of our transformation will exceed our original estimates and therefore accrue to the newly merged company once our transaction with Omnicom is complete, given that there is almost no overlap between our current standalone efforts and the synergies that have been identified and communicated in connection with the integration of the two companies."

IPG forecasts an organic revenue decrease of 1% to 2% for the full year 2025 and expects an adjusted EBITA margin of 16.6%.

During the first quarter, IPG repurchased 3.4 million shares of its common stock at a cost of $90.0 million. A common stock cash dividend of $0.330 per share was declared and paid, amounting to a total of $125.3 million in dividends for the quarter.

As of March 31, 2025, IPG reported cash and cash equivalents totalling $1.87 billion, with total debt at $2.96 billion. The company, a global marketing solutions provider, includes brands such as Acxiom, Craft, and FCB, and reported total revenue of $10.7 billion in 2024.

"Since our previous quarterly call, macro developments have moved front-and-center for all businesses. The implications of potential policy changes vary widely for companies across industries and geographies, and we are working closely with our clients in considering the decisions they may need to make when it comes to channel choices, investment levels, and the best mix of marketing disciplines required to deliver business outcomes in more uncertain economic circumstances," said Krakowsky.

"Notably, Acxiom provides clients with a data and identity resolution foundation that is unsurpassed in our industry and central to helping businesses succeed in any macro environment. Our agencies access this data to identify audiences and opportunities, powering personalized communications through our growing integration of AI into all facets of our business. This, in turn, results in unique and highly relevant customer experiences that drive measurable business outcomes for marketers."

Looking forward, Krakowsky said the company continued to forecast an organic decrease in revenue of 1% to 2% and adjusted EBITA margin of 16.6%. "The strength of our balance sheet positions us well to deliver on our long-standing commitment to capital returns, while continuing to augment our offerings and asset mix. We also remain on track to close the acquisition by Omnicom in the back-half of this year. The resulting combination will be uniquely positioned to grow our clients' businesses in a rapidly changing environment, empower our people, and drive significant value for all of our stakeholders," he said.