Omnicom and IPG foresee modest revenue growth through 2029

Omnicom Group and Interpublic Group of Cos. expect modest revenue growth from now through 2029, according to financial projections included in a merger-related regulatory filing. The agency companies prepared the financial projections late last year as they were negotiating a merger. Omnicom’s projections for the years 2026 through 2029 outline low single-digit growth at both companies, with Omnicom outpacing IPG. Omnicom expected its revenue to increase by 4% annually and IPG’s annual net revenue to increase by 3%. Tracking the latest Omnicom-IPG merger news and analysis The companies in early December announced an agreement for Omnicom to acquire IPG. The deal is expected to be completed in the second half of 2025, assuming shareholders and regulators approve the merger. A summary of the financial projections appears in a joint proxy statement/prospectus filing. Cautionary note In the Jan. 17 filing, the companies stressed that investors should view the financial projections with caution. (Omnicom and IPG each devoted more than 1,100 words to explaining why shareholders “are cautioned not to place undue reliance” on the projections.) Among Omnicom’s caution signs: “While presented with numeric specificity, the Omnicom Projections reflect numerous estimates and assumptions that are inherently uncertain and may be beyond the control of Omnicom management. … Actual results may differ materially and adversely from” the projections. Omnicom’s words of caution continued: “The Omnicom Projections do not take into account all the possible financial and other effects on Omnicom or IPG of the merger, the effects on Omnicom or IPG of any business or strategic decision or action that has been or will be taken as a result of the merger agreement having been executed, or the effects of any business or strategic decisions or actions that would likely have been taken if the merger agreement had not been executed, but which were instead altered, accelerated, postponed, or not taken in anticipation of the merger. “Further, the Omnicom Projections do not take into account the effect on Omnicom or IPG of any possible failure of the merger to occur.” IPG noted similar cautions in the filing. Omnicom and IPG declined to comment for this story. A peak inside Despite the cautions, the figures are worth reviewing for three reasons. First, this document offers a rare peak at internal projections. Second, it’s interesting to see the companies’ relatively modest assumed revenue growth. Third, despite all the cautionary notes, the fact is that the companies used these projections as part of their due diligence review and evaluation of the proposed merger. The filing notes: “Omnicom does not as a matter of course prepare or publicly disclose long-term forecasts or projections as to future performance, revenues, earnings, or other financial results due to the inherent uncertainty and subjectivity of the underlying assumptions and estimates.” For its part, IPG said in the filing: “IPG does not as a matter of course prepare or publicly disclose long-term forecasts or projections as to future performance, revenues, earnings, or other financial results beyond the current fiscal year, and IPG is especially wary of making forecasts or projections for extended periods due to the inherent unpredictability of the underlying assumptions and estimates.” Here’s what the revenue and net income projections show. Top marketers, brands and agency ventures Ad Age Datacenter’s definitive rankings of the biggest U.S. and global advertisers and agency companies Click here Omnicom’s financial projections for Omnicom In the lead up to the merger deal, Omnicom management in December 2024 prepared “unaudited non-public internal financial projections” for 2024 through 2029 with respect to Omnicom. Omnicom projections indicate revenue growth (calculated by Ad Age based on Omnicom figures) of 4.5% in 2025 and 4.0% a year from 2026 through 2029. Omnicom projected revenue of $19.2 billion in 2029, up 22.3% from a forecast of $15.7 billion in 2024. Projections indicate adjusted net income growth in the range of 3.7% to 5.3% through 2029. Behind the numbers: “The Omnicom Projections for Omnicom,” according to the filing, “were informed by Omnicom’s internal forecast for fiscal year 2024 and by Wall Street analysts’ consensus estimates then available for fiscal years 2024 through 2029, then adjusted based on Omnicom management’s assumptions regarding current and prospective market conditions.” Omnicom provided the figures to IPG as part of IPG’s evaluation of the proposed merger. 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. Omnicom’s financial projections for IPG Omnicom took IPG’s financial projections and adjusted them to arrive at Omnicom’s financial projections for IPG through 2029. Omnicom’s projections for IPG indicate annual growth in net revenue of 3.0% from 2026 through 2029. That indicates Omnicom was foreseeing IPG’s annual growth in net revenue coming in slightly below Omnicom’s annual growth in revenue. Omnicom’s IPG projections show net revenue of about $10.0 billion in 2029, up 12.5% from 2025. Omnicom’s projections for IPG indicate adjusted net income growth in the range of 3.4% to 4.0% from 2026 through 2029. Behind the numbers: “The Omnicom Projections for IPG,” according to the filing, “were informed by the IPG Projections and Wall Street analysts’ consensus estimates then available for fiscal years 2024 through 2029, then adjusted based on Omnicom management’s assumptions regarding current and prospective market conditions and the results of Omnicom’s due diligence review of IPG.”

Omnicom and IPG foresee modest revenue growth through 2029

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