Interpublic Group of Cos.’ revenue declined in the latest quarter and the holding company cut its 2023 forecast.
IPG’s second-quarter net revenue declined 2% to $2.33 billion. Organic second-quarter revenue fell 1.7%, a number CEO Philippe Krakowsky expressed being “disappointed” in. In the first quarter, net revenue declined 2.3% and organic revenue fell 0.2%.
IPG now expects full-year organic growth of 1% to 2%. Three months ago, it expected growth at the midpoint of its 2% to 4% forecast. IPG’s shares were down 12% in late morning trading.
Significant reductions in ad spending in the tech and telecommunications sector as well as effects from IPG’s digital specialist agencies that continue to “underperform” had a 3.5% impact on the holding company’s organic growth, Krakowsky said on a conference call. He also mentioned a “curtailing” in the more “traditional” parts of its business affecting “consumer ad agencies.”