IPG reported weaker revenue in the first three months of 2023 as clients in the technology sector pulled back advertising
Organic revenue fell 0.2% to $US2.18 billion in the March quarter.
The US was down 0.9% compared to a 22% rise in the same three months in 2022.
International organic growth was +1.2%. Asia-Pacific fell 2.6%.
The company still expects to meet its full year guidance of organic growth at the midpoint of 2% to 4%.
Other global holding companies reported more positive March quarter results with WPP posting a 2.9% rise in net sales, Publicis Groupe with 7.1% in organic growth and Omnicom with a “solid” 5.2%.
IPG CEO Philippe Krakowsky says media, healthcare and data-informed practices continued to perform well, with strong growth.
However, that was offset by a “softness” in the technology sector.
“Financial results in the quarter are consistent with our internal forecast of pacing for the full year, both overall and across each of our operating segments,” he says.
“Since the start of the year, we have won a number of the industry's most competitive account reviews, encompassing a diverse set of services and client sectors, which increasingly benefits our outlook as we move further into the year.”
The company is also keeping costs under control with “ongoing strong expense discipline”.
“The calibre of our people and our offerings, coupled with strong operating discipline and financial fundamentals, position us well to continue to deliver for our clients and stakeholders, and to further enhance shareholder value.” says Krakowsky.
IPG's March quarter 2023 numbers:
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