Global advertising and media group Interpublic Group has withdrawn its full-year earnings targets, saying visibility into marketing and media spend "extremely challenging" during COVID-19 crisis.
IPG, whose agencies include McCann, MullenLowe Group, R/GA and UM, joins a string of advertising and media companies withdrawing earnings guidance as the coronavirus cuts into the global economy and shrinks advertising spend.
CEO Michael Roth cited the "unknown magnitude" and duration of the impact of the coronavirus.
He foresahdowed cutting costs to meet any fall in revenue. "We have multiple cost levers to align expenses with changes in revenue and our operators are executing as appropriate on both the revenue and expense sides," he told the New York Stock Exchange.
The company had been aiming for 3% organic growth in 2020.
IPGA last month posted a 3.3% lift in organic net revenue to $US8.03 billion for the 12 months to December, led by media, data services and tech.
In the new statement withdrawing targets, Roth says the company is focused on protecting the health and safety of its 54,000 employees, serving clients and supporting communities.”
“Our strategic strengths continue through this challenging period,” he says.
"Notably our best-in-class talent, client-centric culture, differentiated go-to-market strategy, industry-leading data management capabilities, and deep relevance of our offerings.
"Nonetheless, in the current environment, visibility into marketing and media spend is extremely challenging.
"Our company’s balance sheet and liquidity are strong, and consistent with past practices we will look for opportunities to further enhance our financial condition.
"Our company has a long track record of navigating successfully through uncertain economic periods due to the strength of our talent and operating disciplines that are in full force, servicing our clients and rigorously managing our flexible cost base."
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