IPG - Earnings call transcript Q4 2024 | The Interpublic Group of Companies, Inc.

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Operator

Good morning, and welcome to the Interpublic Group's Fourth Quarter and Full Year 2024 Conference Call. [Operator Instructions] This conference is being recorded. [Operator Instructions] I would now like to introduce Mr. Jerry Leshne, Senior Vice President of Investor Relations. Sir, you may begin.

Jerome Leshne

morning. Good joining for us. you Thank morning, joined Krakowsky our Philippe are by This Ellen by and Johnson, CEO, we our CFO.

We our slide earnings release our our interpublic.com. have website, presentation posted on and

be begin followed conclude prepared market X:XX at Time. opens will We remarks before by We plan with Q&A. to Eastern to

These included refer the forward-looking the cautionary the uncertainties about call, further in earnings company. and our are are release our this presentation. our SEC. During other to These in we slide and with statement will filings statements XX-K are to detailed that subject and the

We non-GAAP that, of and operational these while that refer transparency measures, will data substitute our measures financial a greater also review GAAP for to measures. We the not supplemental performance. allow certain provide useful for believe in

is At pleasure this things to Krakowsky. Philippe over it my point, to turn

Philippe Krakowsky

you this Jerry, joining you, Thank for thank and us morning.

as the with outlook our results for then by usual, the the view acquisition of Ellen conclude ahead. detail, As our add strategic benefits year compelling as on proposed a Omnicom. high-level will additional start and quarter and I'll the year well I'll in thoughts our with full of for operating

and beginning Turning to revenue. performance with

X.X%, bringing growth organic revenue decrease to in QX XX full year Our organic basis us was of points.

Those greater fourth Our had during rate we intensified which at to the on revenue discussed activity somewhat but was largely headwinds was previous which anticipated. with the change period, calls. than XX-month impact prior over in a due quarter the of the expected, the you we'd quarter account

forecast. full As of shy the our a result, year fell

technology was in offset and telecom. broadly and as across sector, the geographic as return growth by those notably saw we regions, number a headwinds in growth solid While of to impact food the well and beverage strong of disciplines partially that the

headline had Pizza media on worth Amgen, and quarter calls, the year, the that It's place won't we in wins pick mid-January. including of the our front and on the wins creative the year. also year. too last the Little noting fourth earlier did our a the but in bit quarter be discussed well from new until and benefited to those X consolidation, online as are several close tone Kimberly-Clark have as business underlying fully Hut recent This solid momentum up to Caesars later business represents in As Volvo in which took

Turning expenses to profitability operating in quarter. the and

beginning operating performance, full Our talent a and adjusted of our EBITDA continuing XX.X% investment that margin level margin platform XXXX. profitability while reflects and our of of strong the the our significant sustained year XX.X%. was we against year, that teams, capabilities. in target with And That at challenging notwithstanding set delivered by technology we'd discipline

$X.XX acquired deal reported year as and the impact for Fourth held per or was XXXX. as to $X.XX as intangibles Full in That businesses share quarter expenses diluted sold diluted earnings was $X.XX and our reported share nonoperating to combination of earnings for amortization, planned adjusted some related initial $X.XX sale. and was $X.XX per adjusted. as with compares Omnicom nonstrategic

of our previous of income the reminder, a tax routine of a included years. As full EPS resolution federal audits share 'XX year the per to benefit related in $X.XX

to to course regulatory and in repurchases shareholders, and was agreed year, premerger both dividend merger we've through after the raised no fourth noting that shareholder given at acquisition pendency suspended our Over while to of capital period. meeting. expect we as the also increases we back towards to be historically, parties of the market It's the year, the this Omnicom, share total the repurchase, the $XXX per We returned limitations, the due time million. worth work between share contractually of our by in dividends quarter

dividends expectation the expects remarks, John's of in week increase and to for last allocation such, combined strength as and to substantial, the being Omnicom's to key technology areas, and in will also is free business while repurchases, that talent. enhance as very the it capital such into able further share be its the invest flow combined cash heard historical companies you meaningfully As

of corporate significant about As concerned to of they've spent are lot to course, one of XXXX, effectiveness. we look ahead to A clearly is merger combination frontline full the that working about bringing airtime our enough for talking very as our at commitment being should focus clients, the competitors a a number our fully focused which day-to-day defined integration. is will and group is be, it clearly talent our the we be a successful on on small distracted. obviously and required that here But have activities

In IPG continue to of operate the meantime, course, will, independently.

appropriate especially remain businesses, in that the of of media, global new continue and our geopolitical in somewhat evolution at creativity, abate it's with of as investing XXXX, industry ongoing a we cautious deliberative outlook on that need the and more part the we've that seen to uncertainty, latter we on macroeconomic up that intersection their the clients focused you certain stand-alone around remains and budgeting in data. approach to in these of seen sectors. Entering And to drive technology and part So clients growth. had Yet which means is showing share solutions year, calls. the

we'll navigate losses also and of weight continue the wins year, During trailing top this our on to line.

vertical, to important large one leverage we've many commercial we for not scale. in to long significant to in the specifically previously, a creative decisive was number on was our enabled competitor media wrong Media In outcome worth of discussed on by size everyone that defending factor reminding a at are of Media those care been portion that able decisions a the we've prior. As account and capabilities market very years, where awarded much account a the the the terms health Principal It's largest have its greater shift significant accounts. other Principal of led win side

organic decrease they will to therefore, of to challenged first decisions, a underlying wins X% with the we the just X.X for this quarterly estimate performance, at Looking of on growth of our losses targeting phasing revenue in more and by sound of that the in Factoring percentage year year are, otherwise that net points. three will weigh half largest X for impact easing an those together, headwind in of second with and an X%. be the XXXX significantly half. year's We offset

greatly our combination strengthened that client Omnicom outcomes. highlight to proposed important for competitive will solutions and us more position It's with better with

our Turning expenses on the year. outlook to margin and for

company architecture know, efficiency. with well ourselves we've for challenged most to to of our service as operating both client you our As respect opportunities as consistently evolve of the

growth of You've speak structural This and make our ways capabilities, also offerings changes that with our to simplifying of our heard investing it before integration increasing to improve us. namely to the me the our means what applies structure. work organizational need that working profile, constantly in growth to and higher we

impact it efforts Omnicom. an business, of on review included has strategic clearly on back structure. independent us comes an the With combination the last rethinking the into half when also eye avenues we to course and year, undertook of rapid on but company maximizing evolution that as analysis opportunities focused our will strategic the industry of This our to IPG, our benefit these been wide-ranging operating our multiple over its of a

restructuring our designed includes Our over the therefore, significant outlook a transform drive to the enhance and savings. our of course programming for structural of year business, expense XXXX, offerings

latter corporate in This change greater both of areas in corporate centers many is offshoring a accelerating service strategic nearshoring on the functions, key progress for blueprint on focused production and areas and speeding client certain platform such our services as includes that of centralization analytics. with excellence of delivery, benefits and

number our improve to structure real agencies as at improve the efficiencies. a We also estate of further well in will continue operational efficiency as

equivalent will with expect charge we savings in-year in that should of million XXXX. associated Specifically, a portion $XXX our be an noncash. program of approximately significant generate amount being The

will first on most our quarter plan April. those for second and in and you details those out provide in first We P&L, and additional of this in call plan recognize report to expenses we with our we'll quarters, the

synergies though, be limited combination To with with proposed we million actions our $XXX clear, have as of of very Omnicom. anticipated believe overlap cost these a part

some areas just identified. I in largely two of are those our and savings by combination those enabled detail of last John focus the he heard that you not As week, called companies the from are out

Additionally, and mentioned automation the of on million as incremental onshoring John from call, synergies his $XXX excludes synergies synergies, offshoring. and revenue

allow The opportunities required is it to within company greater the the Omnicom the part possible position. will in and a new become of efficiency restructuring strongest our for given

XXXX, decrease expected of discipline, we're of XX.X% costs, terms of operating usual with actions strong our along on strategic margin adjusted revenue organic EBITDA to targeting X% our X%. under these In with

of the confident remain our we ahead, of with planned our many areas Omnicom. combination and look the we potential company within fundamental As in strength enormous

at turn I'd point, I'll come our back like in-depth Ellen to with results. thoughts on acquisition, but this things of to a view for more over the

Ellen Johnson

hope I that well. everyone is you. Thank

a my that to As webcast. the remarks reminder, our presentation will accompany slides track

on EBITDA the of points. was organic That million of presentation, was in decrease organic brings growth our Adjusted expenses X and X.X%. to Slide revenue basis on year in for the net SG&A acquisition acquired and related $X.X to XX.X%. intangibles and amortization quarter Omnicom. Adjustments our of million, margin revenue deal $XXX.X the was of exclude XX quarter revenue Beginning net our the a the by

year, For adjusted was XX.X%. the our full margin

$X.XX was line, and nonstrategic for quarter from as the the the in Below of have sale. disposition share and per $X.XX both reported for we earnings diluted adjusted. adjusted assets nonoperating held losses Our as businesses

full Our $X.XX adjusted year. diluted for was the EPS

$X.X We only as and concluded strong facility. financial on with the X.Xx position gross the in cash in EBITDA sheet to debt credit our billion year of defined a financial balance with

million Our shares, returned in share totaled X.X shareholders to which the our million year $XXX XXXX. during repurchases

As activity acquisition in fourth we the our suspended to earlier, quarter due the by planned Philippe noted Omnicom.

quarter. and expenses X, the follow. revenue Slide in the slides I'll P&L see for to detail cover in that you'll Turning our operating

fourth quarter revenue year and X. on to full Turning Slide

the 'XX, net impact in X.X% quarter and of sale assets negative net a exchange a from the QX billion, to was the XX points. Compared change was in for ago. revenue of X.X%. basis was dispositions held Our impact decrease year negative rates $X.XX of The

Our brings was basis year. X.X%, full for us revenue organic XX growth which organic decrease the points net to of

out we performance. down revenue slide, segment net Further the break

decreases in growth for offset due X% was Our losses. to in continued Media Solutions XX significant account and Acxiom organically. quarter, Organic at MRM. year strong of decreased decreased growth was by segment than Mediabrands the points. impact less Engagement the Data full basis the slightly this trailing Very of basis segment points XX

and In early the in The Integrated year. size large Solutions led measure, decrease was client a our reflects healthcare of Advertising the performance segment sector Creativity single at decision negative the organic X.X%. in

the international strong performance We in solid we quarter growth McCann, to in had markets. and continue have at notably the at Deutsche,

by year, organically the the For segment decreased basis XX points.

our offset offerings, Octagon had Specialized were segment, segment. and growth in Communication Solutions X.X%. organic in public relations was and by which Momentum more Experiential than experiential At We Golin, at growth elsewhere softness in the and at

grew For the segment year, X.X% SC&E the organically.

which revenue on of U.S., on quarter our domestic Moving X% our in reflecting quarter U.K., was which the In XX% operations. Slide was the in quarter, X.X% to was the late impact our X.X%. region the X% net revenue were revenue, and The our our across accounts of XX% weighed growth decreased decrease XX in organically, of revenue X, our lost basis International increased XXXX the of points our quarter. and broadly growth of organically. by certain organic 'XX net in markets during fourth the --

was Growth year against the elsewhere results with was quarter clients and Europe and XX.X% our decreases notably in France. and at Germany spending than of more weighed organically, offset performance decreased a on by Continental ago. the revenue net the in X% which Dolan soft XX% Declines regional in portfolio. in growth by Acxiom was global

year of net net decrease across organically quarter, quarter, In ago. grew of accounts The the revenue top weighed XX% the organic our of revenue XX.X% global region. X.X%. certain on X% the LatAm, which Asia was loss Pac, X% in on a we which in was results was of In

IPG Argentina Mediabrands was and Colombia. and Our was led strong by growth Mexico, led by by market

XX.X% Our other year rebounded before. growth organically. consists of net the Africa, international impact markets the to East events Canada, revenue due of of the group, where and was the grew Middle Performance Middle strong the in from in and business was X% which East QX

to operating quarter. on and X expenses in the Slide Moving

which XX.X%, the Our margin attained level quarter fully of same fourth EBITDA adjusted in we quarter was the XXXX. is the in

Our ratio XX.X% and in of expenses points basis XX quarter. fourth with salaries total related last year's improved to XX.X% compared

incentive performance-based temporary and labor, base expense due of programs accruals of higher payroll the by and the our severance partially year leveraged have offset increased over to We for timing the course organic from year headcount dispositions. of ago net the expense. our which total of and X% X%, XX,XXX decrease year business approximately with decrease including a We reflects of ended an a

other Our mainly to expense other net a XX of percentage due a XX.X%. office in percent direct was revenue, expense office revenue Occupancy other XX as of net technology. to by of increased and basis investment and points, direct as expense all levels basis while increased flat higher by points

greater Our was hiring expenses quarter. revenue, SG&A fourth by an strategic senior strategic and investments leverage ratios and the by platform These year related SG&A. from expense work and for in technology full presentation ago acquisition and basis same to $X.X salaries, investments million appendix expense the planned on talent reflect development. net that of a XX in increase Omnicom available at X.X% year of offset to were the of points the in drivers increased in Strong due enterprise the are

detail X, steps a quarter to left-hand our comparable This and adjusted reported side picture results and our to adjusted Turning results of to through Slide performance. EBITDA we diluted adjustments on our order present with on transparency better the and give fourth you EPS. begins reported to in

Deal were the for loss of $XX.X sale $X.XX planned column amortization The diluted $X.X held the these small $X.X restructuring share. the expenses our operating was to nonstrategic reported intangibles quarter $X.XX Our was Costs to of share produced million. expense can you adjustments, million. sales acquisition foot of for the was each net At million. due in acquired per fourth million. Omnicom of reversal the as and per the diluted see slide, businesses by the to assets impact Below after-tax pertaining diluted second of of which adjusted at earnings EPS $XX.X

for to our worth full earnings adjustments line also shown is continuity [indiscernible] share. rate for XX.X% adjusted on bridging expectations. tax adjusted that noting our was again, the comparability, as $X.XX the per for and Slide X depicts share our full year, per with diluted of which $X.XX reported schedule, this in It's effective year

X (sic) full capital. ] cash was $X.XX turn flow and year. to the was for Cash before X in On working billion [ $X.XX we Slide changes operations billion from

of $XXX.X Our CapEx million. used investing activities $XXX.X for million, mainly and

April stock of repayment shown dividends Our on here, our usability and shares. and financing of as repurchases activities, mainly for common the and debt in

for Our year the net in cash $XXX.X was million. decrease

Slide billion XX ended portion current sheet. is balance and the of We cash of our the year $X.X equivalents. with

maturities maturity of not Slide outstanding maturity debt scheduled the was our until debt XXXX. XX and $X billion, next and our depicts Total our schedule. diversified year-end is at

both and discipline balance summary, commercially. the and remain our continues strong and financially liquidity financial that needs of In our well positioned, strength we

And with that, I'll to back turn it Philippe.

Philippe Krakowsky

Thanks, Ellen.

with until independent proposed company. we is approvals, combination an be you've in from Omnicom the market As we heard previously, us have complete, continue to and as regulatory

performance our of I call. other particulars quarterly the as any review I'll So would on

continued unifying creative of growth evolution core that's by technologies we commerce of operating many technology and journey, years marketing across insights end-to-end in-house for refining core activation. the media ensure clients, to developed or during can Interact, integrates and portfolio, channels. team, capabilities as our product as of the from whether across and our of in engine. drive and investing, ideation, related Built integrated well and powering An Interact to the latest research the flows sustainable represents system sales marketing production and our suite our important data announcement to This enhancement consumer QX infrastructure

behalf growing being of And used a inter public by companies clients. strategy, their of it's go-to-market it's of number foundational element a on our

capabilities, sentiment media. global enhances e-commerce product its including as quarter, technology over of with attributes, marketplaces significantly clients real-time to announced inventory range delivering to thousands the we well providing points in Node's retail understand digital and pricing, categories of intelligence into known sales This platform retail leading retail XX specific existing drive billions Nodes, acquisition dynamic accuracy reach availability planned the consumer and also shopper In levels commerce optimize intelligence intelligence global and insights performance a leverages in move trends, retail for growth. our data and across analyze product aggregate and of as AI to data of a Intelligence markets, data.

Mediabrands Unilever of level fourth operating kept to review. LatAm MENA and as UM AOR HelloFresh In solid The its quarter, In Air year. in global a IPG that tapped and media Little agency. this client's performance earlier AOR as unit terms as Initiative also business of media for was during Mediabrands XXXX, Canada their and posted part in month, as media number grew new we saw of named and partner. the the Caesars retained the and network its Mediahub growth, Amgen Volvo chose U.S. wins close Alaska sizable and business global

the good financial sectors, wins engagements expertise in third-party first year quarter, care Acxiom own full featured business and and across helping health business new which complex sector. the also large maximize technology, public posted their four These Acxiom's services, and the and investments. including to challenges leveraging growth data reflect industry new tech in clients solve for

IPG's Salesforce IPG's services operational of suite of clients all across implementation the cloud as consolidated offers consulting also full which centralized under clouds, Salesforce and platform now part services of services. Acxiom, We

honors The clients clients Health M&M its network continued the in and space, in Sciences. Regeneron Awards. key to certain expanded Life Edwards London at quarter, -- also the Merck, Awards partnerships IPG the network with AstraZeneca, including winning be the best-in-class top International creative in

commercial marries that Acxiom has media a the Effy Our And influencer data with most Weber assignments with this leading client evolve solutions continue its won area new offerings. to year's nearly and company effective and offering the cultural earned work impact. differentiated campaign launched added on influencer for tool CeloNova. in the award the behalf of dozen for also using a Shandwick

fully to by more AI-assisted committed end integrated are Golin quarter, than XX% first now And clients using PR the workflows over from daily agency the AI year. of workforce. the brands this with During part their as of benefiting Golin's Golin's AI being of staff and

We've continue bring data with deliver significant their and when for in resolution creative, agencies the creative marketplace ideas are seen powerful audience-led thinking by clients. we and identity Interact. production wins that together Our to winning powered increasingly

relationship their from its MullenLowe support and with sizable for which of McCann. with the as offering team This FCB integrated And year. second CeloNova the recently process, both win lead includes last expanded Interpublic consolidation agency this a part as review this and Kimberly-Clark, and us global with consolidation was after

for in such spot secured Super work this commercial FCB #X client, Bowl. Ad in USA another for ranking TODAY Notably, best from the Budweiser, Meter the weekend's

thoughtful Of have consideration to to and structures commitment but capabilities sophisticated course, requirements great marketers, modern the we not maintain given new ways working. of give and only of talent our to tech-enabled

saw further As focus opening estate greater areas delivery of and restructuring finalize nearshoring, and offshoring as a strategic benefit we year. production include program analytics, will in as such This for of on in QX streamlining accelerating as comments, our our number well my services mentioned plans corporate efficiencies of excellence will this centralization improving could our functions, on agencies, and real organizational centers be us footprint. platform where within undertaking cost, progress the

that our strongest line despite to possible in stand-alone the IPG necessary ensure position is top are actions These a challenges.

deliver invested are management transformation our and talent will create XXXX While technology us in dynamic AI, and will importantly, the and actions content areas be Omnicom, and and restructuring this identity the strategic savings resolution, capabilities commerce that to proposed which data, combination margins the will and we in generate savings complementary them cost maintain in company. such platforms, year of as with most well-resourced to These industry's forward. independent expand of position going some

as limited I impact called synergies efforts acquisition As result proposed of out overlap there the by and of we the a identified earlier, is believe Omnicom. these the between

benefits Turning of now We and various Omnicom a full deliver XX. range the to will stakeholders. Slide to Interpublic outlined that our combined

and people, our services and our and significant value. For clients will products enhanced expanded mean

capabilities quality be positioned media both currently collective investments, will offer technology. scope offerings offerings commerce investment market. multiple unparalleled clients that data our of will proposed unduplicated advantages are technology operations and anything bringing on combined sides. an superior to and also to enhance and Our They include in transaction together that and The leverage specialized

highly companies on identity values based and footprints common addition, complementary foundation and technology, deeper a have In geographic offerings exceptional respect any understanding commerce and provider. other to shared company than combined consumers of culture. of the have a our With will resolution

of our beyond experiential well some GenAI terms tools at LLM other across Interpublic, proprietary with and of companies, of competitors we've against Together testing creative, to combined and areas In media, like market are be business. platform. it our our technologies, larger then agencies amplifying investment applying to of moved and Omnicom, able the both would and we focusing bring resources the

against For together this technology and clients, KPIs. innovation come compelling means measurable that growth That's creativity the benefits, future creating will from a drive a and believe revenue deliver combination differentiated outcomes foundation we data, exceptional where opportunities. defined ecosystem and to why result offerings will the seamless growth business clearly of drive

of others, our our think the needs I much partners combination been are that with said have part been proposed said that by there's been because not transaction, to so who enthusiastic has about it Omnicom. be

those data, forward within be able to decisions to ideas colleagues to bring Interpublic, from capabilities tech those all investment array innovate that create looking the we who marketers. they clients those to their advise would are client-facing who on and of wider Our who to with

will a appreciate the we has as together as solution teams comprehensive that with Omnicom. Our in nobody industry

our and be value will can that As spoken see them benefits we deliver and top partnerships the for meaningfully enhanced. we've you'd our expect, also clients. They the with understand

are the day. our bears we and way to to what disrupt remain of focused the services every very the So repeating understand to integration that clients while will trying looking that get it we we deliver not competitors build, are in

announced both last will and You've call nature accretive and that revenue powerful synergies to balance week, Omnicom's deal, the sheet heard from is and the the when support compelling we on return it a deal very innovation, benefits the the accelerate proposition. capital cost the to about financial of

In timing, process moving regulatory terms is forward. of the

We refiled filing that this of we are And review. commonplace process, HSR is to our type. progressing in XX, on transactions continue the HSR which February for

processes meetings well underway the are and Foreign are special approve to shareholder also March scheduled transaction filing for the XX.

We half in expect the year. to continue back to of close this

In competitively in today, the as to are positioned taking public you interim, we've for our outlined future we success. for steps keep

strategic the well Our underlying and long-standing actions our ability capabilities to on as to and will and to foundation. strong build and financial possible and operational as deliver bring our key client-focused further company us remain into as discipline a to as commitment true data the integrated strong combination solutions, technology we'll continue and services extend align

Thanks at for the And your to point, open your today. time let's questions. floor this

Operator

Our Instructions] is from first with question [Operator David JPMorgan. Karnovsky

David Karnovsky

margin against guide? of implication a margin if return like could I on you touch And second to $XXX items some expand where that through due to savings tech the you in understand Maybe the just think said you'd see especially say, is accelerated macro, flat net to, extrapolating but million see year, realized can caution maybe on you think certain reasonable it those first improvement on to versus you business conditions, be notable also sectors. step-up I this cost us then underlying with bit the noted now transformation, and [indiscernible] year the last incremental to And figure Ellen, on growth? I What wanted steady severance actually would for show that savings, out with the assuming in you revenue? this up adjusted then that in the EBITDA? a 'XX is help

Philippe Krakowsky

On is the and 'XX weighing question, of degree downs of very would line on number I sight losses mean, to large think to are those clear performance. just just which do a ups a to and of the what give the I revenue the I tried we've you

to clearly, guide. business back guide, X% the that to underlying the you're X.X% happy that drag is we're So looking the us has at getting if of not that, to be

the terms greater quarter, certain was of mentioned accounts of we In the expected. probably runoff, fourth the than

So a again, trailing just losses about few cumulative QX of, in in the X% way quarter. was

with it's that looked think and So year back as half [indiscernible] of no towards says you if at people us to it heard And news, say macro beginning to then all that were that of they really to the really categories there's or in to one macro two which just make and client you get, needed is just but degree that there's the or at timing. a reality growth. to plans uncertain. start -- level, us geopolitical that some invest the There's look there's new I the

So just -- of people dramatic. it's nothing kind downshift, slight giving I think it's it's a just

Ellen Johnson

David, question. thank you for your

systems and our enables transformation talked it and were business common the operate And Regarding standardizing in are efficient the we remark. the clients. service restructuring, we those XXXX, through that about how processes, that, create doing of lot a which to to of we it's relates we things way And how the the the implementing centers you I be excellence. would say to a continuation. types what and in in restructuring we called prepared out ways just allowing of is doing our which is us more is effective All more that

far As years, in more with we charges savings lead expenses to in as come ahead. the going expanded we to will year, equate and approximately 'XX think will said in which to the margins the savings, future

Operator

from Our with Nathanson is next question MoffettNathanson. Michael

Michael Nathanson

of that the Principal could with about talk So losses. integrate Mediabrand? losses. think client for if top out you some you fix to factor It you Media as line like a business of your quickly you Can called the a do that was some a ability, on opportunity this maybe bit their big done, the notable principal how deal media is seems

that was to talk you at build your than better if point like for Principal merge on media? So about why it thesis to

Philippe Krakowsky

you Look, strategic benefits would many so introduce I merger. I and that many so of the don't would think to parts mean -- I there are

long has our time, media of was us that for business, we for very area into strong a in ran and a yes, challenges, which So that was felt concern. an been performer 'XX,

principal in that from options that the a bring the expertise the you of we our heard from partner, -- products which way because to service offering to we domestically, contemporary which U.S., the very to together getting kind able and extent to So in that perspective, were presence be ourselves deal degree a and we there. then a to got clients, in regard soon us in you good felt about put of the great able were sophisticated were build we

that to fact connecting do this marrying that and that this Omnicom up regard a they think is sophisticated do that clearly's globally, that it I well they benefit. in the given

think much there's about is as opportunity which so what just complementary. The so there's together, the much much is I is not areas. greater this companies not more how that But say to the fit than, that opportunity one and of

Operator

question Our Roch Julien from next with Barclays. is

Julien Roch

forecast you first point point in consensus. 'XX, and My above proxy have in is basis margin is XXX where XXX well presented you question 'XX which in the statement, basis improvement

cost-cutting next get get million to get those the you first today's how announced of confirm improvement? forecast? my of you savings or announcement, you that's than $XXX there, can year, i.e., question. need margin do more And That's So the another with today round to you

I and you EBITDA? that statement the combined EBITDA the as I is, million get $XXX million. add that you'll group, savings and today take do one just to take the [indiscernible] get are some Kind the philosophically, second that. me largely to Because are $XXX clients telling The those cost of in creep the you for from said independent have -- some if what like combined proxy forecast announced have you've

one, combined John back both have the agencies merger if better not client one were as that the and facing creative right be you you do and any global that a end fine, said better that office. Is tools X and that And would yourself you with the they would brands, But number? mostly be because and then do absolutely last company merging consolidate and combine should the global media X agencies. up will have benefit

Philippe Krakowsky

that time the one's head to awful we've in wrap got. an That's lot around

with the reflects now. we was So will I it work doing that and with [indiscernible] I guess have we the in filings that the shared modeling seen you you clearly, that start are would

through like the limited seen success. led degree do the understand to seen overlap you've lead cost merger having that there. gone tangible there's act his very past management with and this, we in which exercise You've be to the the and team, programs The John to synergies us the around that to these in they acquisition,

about you then a And questions sizable asking start running very enterprise.

large and benefits corporate the very, companies the SG&A, very the all our things significant. John that vendor two out nature, of called of compensation, of shared cost so clearly, together, in these around presence market services, corporate they're that the And savings, things

responding Acxiom clients that the think, the our things out, the answer fair and Flywheel a to I of Omnicom needs geographic through point and our point a that and are detail, laid as to that has very in because said, technology, Credera, very, what question. well got amount it to we've evolve, of there view, that I together, many, investment strength [indiscernible], people fit happen see Our as of, the Michael's I've are fit together that do in and the just businesses they many on can to continue from

to to talent with how of for brands. a organizational opportunity think and -- then very to cultures the many of with optimal teams giving clients. structure, now kind would and think what's in the you travel, aligned I what wins I by Clearly, Omnicom we're into you strongest for to pick the we them the the brands, fact sitting that used and level, the and of just here holding the company within out those that into solve of agency I of the philosophically, talent them strong the have that kind brands the put going providers We at come us point is a terms win commitment company direction with word we agency that the gee, client.

then how And that to of combine and increasingly, we've how like-for-like heard platform excellence services. the us ties create into about talk we centers

and know that many options -- And got in we be don't the we'll complementary capabilities. areas the super is point I matter. and But of at them we've that go question clients able the gee, is will events options one I to number very answering capability have So about, very think give productive. to that this optimal strong how every

revenue So That I the hopefully, period in sight. lot But sort formation, most a was gives flying out the on think a minutes what do line we'll think don't questions you of opportunity "synergy" I this so that revenue time, of of asked. the we'll and meaningful, next covered again, of is finite you but I it the call. X

Julien Roch

did. you No,

but too excellent summary. an for Sorry ambitious, you being for thank

Operator

Our next from Jason with question Bazinet Citi. is

Jason Bazinet

little was component significant? quick the the little of you about X achieve a cost achieve had just those? $XXX bit costs more being bit you to called out I of Can just I a when noncash savings. confused follow-up just talk million to the those on

Philippe Krakowsky

to there our might point, real think I but an will to off will or also dramatic. equivalent, there, and estate, some be we rationalize nothing there Ellen's investments, as of we and some some writing asset tech which it's and degree standardize, be said, X we be we might as

Jason Bazinet

on nothing compensation no? or side There's anything, the stock-based

Philippe Krakowsky

No.

Operator

Our with Morgan McVeigh next Stanley. Cameron is from question

Cameron McVeigh

And Just capability Or if curious at that important recent of new is pitch, their buying, how that? most [indiscernible] when giving about retain media the how impact you priorities account now shifted thinking about curious win business? a in secondly, or you trending is how is are you then think losses? have exclude when principal-based the recently? And CMO all to healthcare

Philippe Krakowsky

units. into. months, Healthcare, questions And of deep it's it's matter of got subject as modicum whatever of you I operating we that very X, so one healthcare sight Sure. channel year. I growing line independent of around that, been We've think was large one our We've clearly know, X, expertise. everybody, asking of you giving sort We mean, X as It's were covered. and swing. got sizable -- every very, see this a

doctors, still the if those be but to other need ecosystem, whether to be clients are so consumers, going playing going caregivers, all to of that's that's reaching on that's whether forth. of just healthcare not need in so changes, and to the so And participants field whether the in still all market. They're

were the share some we and that be there'll might media in we terms have see shift of how them where so owner clear are. an as side that didn't sitting you but And we a that impact on reach meaningful concern

And consultative, about we've clients highly then question, investment the That of us possible helping on database, think for has is built much decisions. smartest something CMO called that Principle the was make call because that the kind business we media out. of sort that and a very piece into come I we equation

lot clearly, on you important, I I there's of a where we Acxiom. fusion commerce Flywheel around you opportunities see have connecting largest this, it's technology, that is of very data. a a commerce and Clearly, now because and think think media side, opportunity big that's the Omnicom the strength but see important conspicuous in the and of part

see And or opportunities in a some last you the like [indiscernible] CeloNova sizable months. X integration

a that it's more that. part become decision But of think So than clearly sophisticated has the I matrix. no,

Operator

from comes Craig Huber question Research last our Partners. with Huber And

Craig Huber

retail/e-commerce, are of you three your technology for those? maybe the reach quarter, the or for give to that like growth I sectors lack each the healthcare, organic on thereof how maybe how bit more, fourth if Philippe, outlook hear touch could, if us and did little I'd in doing, could a year about new

Philippe Krakowsky

decision which win very right? smaller The you're had obviously, for and year last talked -- was the we've healthcare our I win turned touching big is the sizable mean, in healthcare impacting much year it's the into a So us media retail that bit we results. two in biggest a of losses, upon about these space.

health, this it that world. said, healthcare our of parts we of and have one think big independent I year, other growing as touches I So in swing item

healthcare clients business. the We've side. got practice on sizable in see media we've a PR got -- the You healthcare

just to one because us. then is is us telco sizable the very just going has it's back for come Retail now tech be muddied mentioned, And and growing as going and be loss for to there.

that, I it that as I can. best probably as So think covers

one You're to the sizable distort item where result. going we've got that's happening two very pick to

Craig Huber

just could $XXX cost elsewhere. we Fair savings, they're should a that and nitpick important I that Obviously, think million Ellen, XXXX? million? exit as like about basis annual an if that, enough. for you what please? Is the more $XXX you ask sectors we on How in-year of XXXX question, guys is

Ellen Johnson

that relationship and I to full excellence, we're the It's what we've I allows out to have of about our offering the incremental was just clearly XXXX. at don't of it's mean structure, going synergies a Omnicom. to the more in nearshoring of We be year higher. agencies. really which I here, streamlining reemphasize And just benefit lot talking would creating called mentioned, our centers a in some also operating creating as efficient operations that

separate should that continue we very benefit synergies to So apart deal that margins. our the But again, from out. and called

Craig Huber

you've the if opens? business from the putting various how on to from I what here, the losses now? versus, then, front? about could are a hear one feel out before I squeeze right year environment your Philippe, tone talked I'd clients of now, macro the And do mean you that market right about tone feedback say, that business you here love of ago aside more just in there, the

Philippe Krakowsky

not seeing But in think remarks, as are of of are seeing caution to leaning the we a towards we in a but back ago, out Well, move people still way or mean, go big that's you bigger the than through clients new engaged. items some terms the latter There's And you macro. all the terms that part of and say said one then as opportunity ago, I a the pending that was if better, I to as were year a and we felt business We're things that there opportunities. bit we're of we tried broadly case, there fair flow. two the year speaking, in of to year. measure I'd call in meaningfully

So it solid, say. feels I'd pretty

it's last when -- of compared me, the in it say to want compared asking you quarter-to-quarter. what say And enough I last kind swing point don't in had year. year to You're to last year, year

Craig Huber

versus clients year from their from your what how were to and sense for hearing Yes, get feeling spending they just upcoming you're by ago you year? a levels I'm the a trying

Philippe Krakowsky

kind vary to pending of open again, like, read it does are said, necessarily I sector, sector geopolitical, macro X the get are Like I items same you it or don't mean things that but X feels progressing.

you look speaking Appreciate I time again in all April. to forward today, and to the

Operator

This you. today's Thank conference. concludes

at You time. may disconnect this

The Interpublic Group of Companies, Inc. (IPG) 12 Feb 252024 Q4 Earnings call transcript