Total revenue of $2.5 billion, including billable expenses
Revenue before billable expenses (“net revenue”) of $2.2 billion
Organic net revenue decrease of -3.5% due to prior-year client account activity
Reported net income was $162.5 million, which includes after-tax expense of $88.4 million for previously announced strategic restructuring actions
Adjusted EBITA before restructuring charges and deal costs was $393.7 million with margin of 18.1% on revenue before billable expenses
Diluted loss per share of $0.44 as reported and diluted earnings per share of $0.75 as adjusted
Philippe Krakowsky, CEO of Interpublic: “Organic revenue was in line with expectations, reflecting the impact of account activity in 2024. Underlying growth in the quarter showed sequential improvement against those headwinds, with strong performance at our media and healthcare practice areas. We also saw growth in our sports marketing and public relations disciplines. Our adjusted Q2 margin was very strong due to significant progress on our program of strategic transformation, as well as the benefit of improving operating performance at our two largest units.
“Given our first-half results, client activity that remains largely resilient in the face of macro uncertainty, and the work we are doing to further develop our portfolio in growth areas such as media trading, commerce and data-driven marketing, we remain on track against the full-year target for an organic net revenue decrease of 1 to 2%. At this level, we expect to drive adjusted 2025 EBITA margin significantly ahead of the 16.6% we had previously shared, reflecting both structural and operating improvement.
“Our organization continues to evolve as we connect more of our capabilities to the strong foundational elements of data and technology. This includes continued progress in embedding artificial intelligence in our workflows and products, allowing us to deliver the benefits of our centers of excellence and platforms to clients through solutions that drive marketing and sales outcomes for their businesses. With these investments in our people and our capabilities, we are seeing positive new business performance.
“Looking ahead to our combination with Omnicom, we remain on track to see the transaction completed in the second half of this year. The level of interest and support from clients continues to be strong, and there is enthusiasm on the part of practitioners across both organizations to unlock the value that the combination will create. By bringing together our deep pools of talent, complementary capabilities, and geographic strengths, we can create an organization with unmatched ability to deliver business outcomes for marketers in every industry sector, around the world.”