Interpublic Group reported a net organic revenue decline of 1.8% for the fourth quarter, with 0.2% organic growth for full year 2024, versus flat for the prior year.  

The initial outlook for 2025: an organic decline of between 1% and 2%, due in part to client losses in 2024. That guidance does not take into consideration the proposed acquisition of the company by Omnicom, which, if it goes through, is not expected to be completed until the second half of 2025. Only then could the companies offer a joint financial outlook. 

Net revenue in Q4 was $2.4 billion and $9.2 billion for the full year.  

“Given the rapid and ongoing evolution of our industry, we will be undertaking a program of accelerated business transformation this year,” stated IPG CEO Philippe Krakowsky. 

He said it is designed to “enhance our offerings and drive significant structural expense savings. This blueprint includes improving operating efficiencies at a number of our agencies, strategic centralization of many corporate functions, speeding our progress on simplification and platforming in both corporate services and certain areas of client delivery, greater offshoring and nearshoring, as well as further improving real estate efficiency."

Krakowsky said the effort is expected to save $250 million in costs in 2025, net of reinvestment in some of the company’s “advanced capabilities.” He also offered that those savings would have “limited overlap with the cost synergies identified as part of the Omnicom acquisition.” 

Touching on the proposed merger Krakowsky added that, “We believe the proposed acquisition will result in the industry’s most dynamic and well-resourced company. Our understanding of consumer behavior at every step of the marketing lifecycle will be deeper than any other provider, as will our capacity to invest in emerging technologies.” 

The company said the organic net revenue change excludes agencies R/GA and Huge which the company classified as “held for sale” in Q3 of last year.  The sale of Huge closed in the fourth quarter. 

Staff cost ratio, which is total salaries and related expenses as a percentage of revenue before billable expenses, decreased to 58.7% in the fourth quarter of 2024, compared to 59.4% for the same period in 2023. Total salaries and related expenses in the fourth quarter of 2024 was $1.43 billion, a decrease of 6.9% compared to the same period in 2023. 

 For the full year staff cost ratio decreased to 65.6%, compared to 66.4% in the same period in 2023. Total salaries and related expenses was $6.02 billion during the full year, a decrease of 3.5% compared to the same period 2023. The decrease was primarily driven by decreases in base salaries, benefits and tax and temporary help expense, partially offset by increases in severance expense. 

The company recorded a goodwill impairment of $232.1 million for 2024. Fee’s in the fourth quarter related to the proposed acquisition of the company totaled more than $9 million.