The Interpublic Group of Companies, Inc.

The Interpublic Group of Companies had a successful year and ended it on a positive note with an all-around beat. Its organic net revenue increase for the fourth quarter was 3.8%, bringing the three-year growth performance to 9.7%. This indicates that growth decreased in the fourth quarter in line with known geopolitical and macroeconomic crosswinds. Their growth persisted in every region of the world during the fourth quarter, despite slowdowns in the global economy. All of their operating segments had organic growth throughout the quarter. IPG Mediabrands’ double-digit growth was the main driver of the 5% organic growth in Media, Data & Engagement Solutions. Growth in the segment and across the entire group was mostly driven by increases at the company’s digital experts. IPG Health, which once again produced high single-digit growth performance, led the company’s Integrated Advertising & Creative Driven Solutions segment’s 2.6% increase. Furthermore, their Specialized Communications & Experiential Solutions division gained 3.5% organically. IPG also completed the acquisition of RafterOne, adding size and capabilities to its offerings in a field with high growth potential and strategic significance. We give the Interpublic Group of Companies a ‘Hold’ rating with a revised target price.