Revenue Flat for Simplified, 'More Efficient' WPP

WPP has published preliminary results for the full year 2024, with like-for-like (LFL) revenue less pass-through costs down 1.0% to £11.395bn. Headline operating profit was £1,707m, up 2.0% LFL, and headline EBITDA down slightly from £2,234m to £2,148m.

In the fourth quarter, revenue less pass-through costs fell 2.3% (LFL) - growth in western continental Europe was offset by declines elsewhere, including falls of 21.2% in China, 5.1% in the UK, and 1.4% in the US.

During the year WPP has continued the simplification of its client-facing structure, notoriously fragmented under previous boss Sir Martin Sorrell: six agency networks now represent around 92% of WPP, and the group says it has a more integrated offer across creative, production, commerce and media, as well as more efficient operations.

CEO Mark Read says of the figures: 'We achieved significant progress against our strategy in 2024 with the creation of VML, Burson and the simplification of GroupM - some 70% of our business. We sold our stake in FGS Global to create significant value for shareholders. And we increased our margin, while stepping up our investment in AI through WPP Open, which is now used by 33,000 people across WPP. The top line was lower, however, with Q4 impacted by weaker client discretionary spend. We did see growth from our top 25 clients of 2.0% and an improving new business performance in the second half of the year with wins from Amazon, J&J, Kimberly-Clark and Unilever reflecting the strength of our integrated offer'.

For the future, Read says the group 'remains cautious given the overall macro environment', but concludes: 'we are confident in our medium-term targets and believe our focus on innovation, a simpler client-facing offer and operational excellence will support our growth and deliver greater value for our shareholders'.

Web site: www.wpp.com .