Interpublic today reported a 6.1 percent decline in Q4 net revenues to $2.3B and a 54.5 percent drop in operating profit to $223.4M due to the negative impact of the COVID-19 pandemic. Organic net revenues dropped 5.4 percent.
CEO Philippe Krakowsky said IPR “reported a solid fourth quarter,” especially in the U.S., which reported a 1.8 percent dip in net organic revenues compared to a 10.5 percent international decline.
IPG recorded a 6.5 percent drop in 2020 net revenues to $8.1B and a 45.8 percent decline in operating revenues to $588.4M. That “full-year performance once again should place us at the top of our sector,” said Krakowsky.
He said IPG continues to be disciplined on the expense front and “proactive and strategic in our approach to structural cost actions.”
IPG DXTRA, which includes Weber Shandwick, Golin, ReviveHealth, Current Global, DeVries Global, Rogers & Cowan PMK, and Powell Tate, reported a 14.8 percent dip in Q4 revenues to $298.7M on a reported basis and a 15.1 percent organic drop.
CEO Andy Polansky said IPG DXTRA's PR revenues slipped in the mid-single-digit range for Q4 and the full-year.
Healthcare, technology, influencer marketing, corporate and social purpose were strong performers.
Polansky is encouraged by the uptick in business during the last months of 2020 that continued into the new year and the increased collaboration among the 27 DXTRA brands to find new solutions for the challenges faced by clients.
He cited account wins at Weber Shandwick (CDC’s National Center for Immunization & Respiratory Diseases, Kerrygold), Golin (General Mills corporate, Johnson & Johnson skincare products, Tourism New Zealand) and Current Global (Subway) among the highlights of 2020.
Krakowsky said though visibility is challenging, he expects IPG will return to positive growth IPG for 2021.