WPP has reported a revenue of £14.7 billion for 2024, a 0.7% decrease from the previous year, with like-for-like revenue up by 2.3%. The company’s revenue less pass-through costs stood at £11.4 billion, down 4.2% on a reported basis and 1.0% like-for-like.
The results sent the company’s shares tumbling 16% after the market opened, hitting their lowest level since 2020. The ad giant, once built up by Martin Sorrell and now led by Mark Read, is grappling with weak annual sales as it faces fierce competition and tighter client budgets.
Despite a sharp rise in reported operating profit, up 149.5% to £1.3 billion due to lower amortisation charges and gains on disposals, headline operating profit slipped by 2.5% to £1.7 billion. The headline operating margin improved slightly to 15.0%, compared to 14.8% the previous year.
The company has pinned its hopes on technology, boosting its investment in WPP Open, an AI-powered marketing platform, to £300 million for 2025, up from £250 million in 2024.
Mark Read, Chief Executive Officer of WPP, said the company made “significant progress” in 2024, pointing to the creation of VML, Burson, and the simplification of GroupM, which together account for about 70% of WPP’s business. He highlighted the sale of WPP’s stake in FGS Global, describing it as a move that created “significant value for shareholders.”
In India, the company recorded a 2.8% like-for-like growth in revenue less pass-through costs for 2024, making it the only one of its top five markets to register annual growth. However, the December quarter saw a 5.4% decline, the first quarterly drop since the Covid-19 pandemic, as the company faced a tough comparison with the previous year’s 22.0% surge, fuelled by ad spending during the ICC Cricket World Cup. This mixed performance came as the company continues to expand its footprint in India, recently establishing a Global Delivery Centre in Chennai as part of its push for operational efficiency and tech-driven creativity.
Regionally, like-for-like revenue less pass-through costs declined in North America by 0.7%, the UK by 2.7%, and the Rest of the World by 2.6%, while Western Continental Europe saw a 1.7% rise. China reported a significant 20.8% drop, attributed to client assignment losses and ongoing macroeconomic pressures.
Read acknowledged the impact of weaker client discretionary spending in the fourth quarter but noted an uptick in new business, with a 2.0% growth from WPP’s top 25 clients. “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,” he said.
Among its global integrated agencies, GroupM, the company’s media planning and buying arm, grew 2.7% for the year, bolstered by client investments in media and wins from Amazon and Johnson & Johnson, though this was offset by a 3.9% decline in other creative agencies due to client losses and a weak Chinese market.
Looking ahead, the company expects like-for-like revenue less pass-through costs to be flat or fall by up to 2% in 2025, with hopes for a stronger performance in the second half of the year. This outlook falls well short of growth expectations, raising concerns about the company’s future trajectory.
Read remained cautious about the macroeconomic environment but expressed confidence in the company’s medium-term plans. “The actions we are taking across WPP will strengthen our existing client relationships and drive our new business results,” he said. “We expect some improvement in the performance of our integrated creative agencies in the year ahead. At the same time, we have comprehensive efforts underway to improve our competitive positioning through new leadership at GroupM, with further investment in AI, data and proprietary media.”
“Though we remain cautious given the overall macro environment, 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,” he added.
