IPG(IPG)2025-04-28 21:25Financial Performance - Total revenue for Q1 2025 was $2.32 billion, a decrease from $2.50 billion in Q1 2024[11] - Net revenue before billable expenses was $2.00 billion, reflecting an 8.5% decrease year-over-year, driven by a 3.6% organic decrease and a 1.2% negative impact from foreign currency translation[11][13] - The reported net loss was $85.4 million, resulting in a diluted loss per share of $0.23, compared to earnings of $0.29 per share in Q1 2024[18] - Total revenue for the three months ended March 31, 2025, was $2,322.6 million, a decrease of 6.9% compared to $2,495.9 million in the same period of 2024[38] - Operating income for the same period was a loss of $42.0 million, compared to a profit of $184.2 million in 2024, reflecting a significant decline[38] - Net income available to IPG common stockholders was a loss of $85.4 million, down from a profit of $110.4 million in the prior year[44] - Basic and diluted earnings per share for the three months ended March 31, 2025, were both $(0.23), compared to $0.29 in the same period of 2024[38] - Revenue before billable expenses decreased to $1,996.3 million, down 8.5% from $2,182.9 million in the same quarter of 2024[44] Restructuring and Charges - Restructuring charges in Q1 2025 amounted to $203.3 million, aimed at transforming the business and enhancing service offerings[20] - Restructuring charges for the quarter amounted to $203.3 million, significantly higher than $0.6 million in the previous year, indicating substantial restructuring efforts[41] Cash and Shareholder Returns - Cash and cash equivalents totaled $1.87 billion as of March 31, 2025, down from $2.19 billion at the end of 2024[23] - The company repurchased 3.4 million shares at an aggregate cost of $90.0 million during Q1 2025[24] - A common stock cash dividend of $0.330 per share was declared and paid, totaling $125.3 million for the quarter[25] - The company declared dividends of $0.330 per common share, consistent with the previous year[38] Future Outlook - The company forecasts an organic revenue decrease of 1% to 2% for the full year 2025, with an adjusted EBITA margin target of 16.6%[7] - The merger with Omnicom is expected to close in the second half of 2025, positioning the combined entity for growth in a changing environment[7] Operating Expenses - Total operating expenses increased to $2,364.6 million, up 2.3% from $2,311.7 million in the previous year[38] Adjusted EBITA - Adjusted EBITA before restructuring charges was $186.5 million, with a margin of 9.3% on revenue before billable expenses[5][11] - Adjusted EBITA before restructuring charges and deal costs was $186.5 million, slightly down from $205.5 million in the prior year, with a margin of 9.3%[44]