IPG Q4 2021 revenue up 11.6% to $2.55 bn; APAC delivers growth of 9.7%

Interpublic Group (IPG) has reported net revenue of $2.55 billion in the fourth quarter 2021, an increase by 11.6%, compared to $2.28 billion in Q4 of 2020. The organic net revenue grew by 11.7%, which was comprised of an organic net revenue increase of 12.1% in the US and an increase of 11.0% internationally. Fourth quarter 2021 total revenue, which includes billable expenses, was $2.93 billion, compared to $2.55 billion in 2020.

In the Asia-Pacific region, IPG garnered revenue of $237.8 million, reporting a growth of 9.7%, on the back of strong performance led by Australia, Singapore, India and Japan.

Internationally, the operating income in Q4 of 2021 stood at $457.3 million, including restructuring charges of $13.0 million, compared to $223.4 million, including restructuring charges of $253.9 million in the corresponding quarter of 2020. Adjusted EBITA before restructuring charges was $491.8 million in the fourth quarter of 2021, compared to $498.8 million for the same period in 2020. Adjusted EBITA before restructuring charges margin on net revenue was 19.3% in the fourth quarter of 2021, compared to 21.8% for the same period in 2020. Restructuring charges in 2021 consist solely of adjustments to the company’s 2020 restructuring program.

For the full year 2021 net revenue of $9.11 billion increased by 12.9% compared to $8.06 billion in 2020. The organic net revenue increase was 11.9%, which was comprised of an organic net revenue increase of 10.9% in the U.S. and an increase of 13.9% internationally. Full year 2021 total revenue, which includes billable expenses, was $10.24 billion, compared to $9.06 billion in 2020.

Operating income for the full year 2021 was $1.44 billion, including restructuring charges of $10.6 million, compared to $588.4 million in 2020, including restructuring charges of $413.8 million. Adjusted EBITA before restructuring charges was $1.53 billion for the full year 2021, compared to $1.09 billion for the same period in 2020. Adjusted EBITA before restructuring charges margin on net revenue was 16.8% in 2021, compared to 13.5% in 2020.

Commenting on the performance, Philippe Krakowsky, CEO of IPG, said, “Our strong performance reflects more than the cyclical economic recovery, it further validates the growing role we are playing with marketers as they adapt and enhance their businesses to meet the challenges and opportunities of the digital economy.”

“Clients are increasingly looking for partners with expertise in first-party data management, performance media, creative ad tech and direct-to-consumer commerce, areas in which we remain very well-positioned,” he added.

Krakowsky further said, “As we look ahead, we anticipate that 2022 will be another year of strong growth, on top of our multi-year, industry-leading performance. As such, we are targeting full-year organic growth of 5% in 2022. With that level of growth, we expect that in 2022 we will consolidate the significant gains achieved in adjusted EBITA margin over the past two years, at a level of approximately 16.6%.”