Interpublic Group of Cos.' organic revenue grew 7% in 2022, in line with its October forecast, and the agency holding company anticipates 2% to 4% growth this year.
CEO Philippe Krakowsky spoke on IPG's conference call about preparing for the uncertain macroeconomic outlook in the coming year. IPG's shares were down 3% in afternoon trading.
IPG's organic revenue rose 3.8% in the fourth quarter, a slowdown from the 11.7% growth in the same period a year earlier. Organic growth is a key financial indicator that factors out acquisitions, divestitures and the effects of exchange rates. Before billable expenses, revenue rose 3.7% to $9.45 billion in 2022, and was essentially flat at $2.55 billion in the fourth quarter, IPG reported.
IPG's 2023 forecast is on par with those of rival holding companies Omnicom Group and Publicis Groupe, which forecasted mid-single-digit organic revenue growth in their recent earnings reports. However, both of those companies reported slightly higher organic revenue growth for 2022—9.4% at Omnicom and 10.1% at Publicis. WPP will announce its results on Feb. 23 and Stagwell will release its results on March 2.