IPG posted a better than expected rise in organic growth of 1.7% for the December quarter and has a positive outlook for 2024.
The global advertising group expects organic net revenue growth for 2024 in a range of 1% to 2%, despite closing 2023 with full year organic growth down 0.1%
However, IPG still faces economic uncertainty and challenges with clients in the technology sector.
Total revenue, which includes billable expenses, was $3.02 billion for the December quarter. Net income was $463.2 million.
IPG had reported a 0.4% fall in organic revenue growth for the September quarter, weighed down by cautious technology clients and marketers concerned about dark economic winds.
The positive December quarter result comes after competitor Omnicom earlier this week reported 4.4% organic revenue growth for the December quarter. France-based Publicis reported full year organic growth of 6.3% and the December quarter at 5.7%.
At IPG, organic growth in the US was just 0.1% in the three months to December, compared to IPG’s international business at 4.3%. Asia-Pacific region was down 1.5%.
“The strength of our capabilities in media, healthcare and specialty marketing services was once again evident, as was the impact of macro uncertainty and challenges due to clients in the technology sector,” says CEO Philippe Krakowsky. “These cross-currents continue to be in effect as we move into 2024.
“Looking ahead, we remain confident in the foundational strengths of our company. We anticipate that the strongest and most consistent growth areas of our business will perform well in the year ahead.
“We will continue to make strategic investments, including the ongoing development of our leading addressable capabilities, such as our data-powered tools, retail and performance media, and the expansion of our media buying models.
“Our current and prospective investment in AI ensures that this increasingly important technology extends to the full range of our offerings. Along with other strategic actions, this will allow us to continue to evolve our portfolio and asset mix.”
IPG's numbers:
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