IPG’s financial projections for IPG
In connection with the evaluation of the proposed merger last October, IPG management prepared unaudited non-public internal financial projections for 2024 through 2034 with respect to IPG.
Figures in the table below show IPG projections through 2029.
IPG projections imply a net revenue decline of 3.7% in 2025 followed by annual growth in the range of 3.7% to 4.1% through 2029.
The forecasted 2025 drop in net revenue reflects divestitures. Notably, the 2025 figure excludes net revenue from agencies that IPG has sold (for example, digital agency Huge, which was sold in December 2024) or has put up for sale (digital agency R/GA).
IPG projected net revenue of $10.4 billion in 2029, up 12.5% from a forecast of $9.2 billion in 2024.
Behind the numbers: “The IPG Projections,” according to the filing, “are IPG’s internal forecast for fiscal years 2024 through 2027 with extrapolations thereof for fiscal years 2028 through 2034.
“The IPG Projections were prepared for IPG on a standalone basis and include numerous assumptions … (including) historical trends, recent client wins/losses, discontinuation of certain businesses and cost savings initiatives. The cost savings initiatives reflect certain assumptions on cost savings from restructuring, which were preliminary and subject to change. The cost savings initiatives are estimated to be achieved on a standalone basis by IPG beginning in 2025.”
IPG provided the figures to Omnicom as part of Omnicom’s evaluation of the proposed deal.
IPG’s projections shown in the filing reflect net revenue—revenue minus billable expenses—rather than revenue. As a result, the figures for IPG are not fully apples-to-apples with figures for Omnicom since Omnicom reports only revenue and doesn’t break out net revenue.