Q1 Revenue Slips at WPP

WPP has announced a slight contraction in its business in the first quarter, with revenue less pass-through costs down 2.7% like for like to £2,482m.

The headline revenue figure was £3,243m, down 0.7% LFL, but WPP always stresses that the figure without pass-through costs is a better indicator. CEO Mark Read says the quarter saw the group 'continue to make solid progress on its strategic priorities', including growth for its newly integrated units VML and Burson; the acquisition and integration of InfoSum into GroupM, and the group-wide adoption of AI system WPP Open, now used by 60% of its client-facing staff.

Most global regions saw declines, with China revenue less pass-through costs down 17.4% and the UK 5.5%, while North America was flat (-0.1%) and India bucked the trend with growth of 5.5%.

Read said financial performance in Q1 was 'in line with expectations, reflecting macroeconomic challenges and the timing of new business.' These are expected to continue in Q2 whereas performance should improve in the second half of the year, and the firm expects 2025 LFL revenue less pass-through costs of 'flat to -2%' with headline FX-neutral headline operating profit margin also flat.

Group home page: www.wpp.com .