IPG Q2 FY2025: Revenue falls 6.4% to $2.54 billion

The Interpublic Group (IPG) reported a 6.4% drop in total revenue for Q2 FY2025 to $2.54 billion, down from $2.71 billion a year ago, as organic revenue slipped 3.5% and restructuring charges weighed on profitability.

Net income fell sharply to $162.5 million from $214.5 million, reflecting $118 million in restructuring costs and $10.9 million in deal-related expenses tied to its pending merger with Omnicom. Diluted earnings per share (EPS) dropped to $0.44 from $0.57, while adjusted EPS (excluding one-off items) came in at $0.75.

Ad Spend Focus and Segment Trends

IPG’s Media, Data & Engagement Solutions, which includes Mediabrands, UM, Initiative and KINESSO, saw a 3.1% organic revenue decline. Integrated Advertising & Creativity Led Solutions, home to McCann, FCB and MullenLowe, posted a steeper 6.3% drop. Specialized Communications & Experiential Solutions was the only bright spot, growing organically by 2.3%.

Across geographies, Asia Pacific faced the sharpest organic revenue decline at 13.6%, reflecting macroeconomic pressures and client pullbacks in discretionary spending. Latin America bucked the trend with a 1.4% organic gain.

IPG’s selling, general and administrative (SG&A) expenses rose to 2.1% of revenue before billable expenses (from 1.2% a year ago), largely due to deal costs and increased investments in new business pitches and client retention campaigns.

The company said it is making “continued progress” on its merger with Omnicom and remains confident of closing in H2 2025. CEO Philippe Krakowsky emphasised that “IPG agencies remain competitive in new business activity,” despite industry headwinds.

Adjusted EBITDA before restructuring and deal costs stood at $393.7 million, with margins improving to 18.1% from 14.6% last year.