WPP expects lower revenue in 2025 as client spend weakens late in 2024

WPP PLC on Thursday guided flat to lower revenue in 2025, as it said ‘weaker client discretionary spend’ in the fourth quarter of last year hurt its 2024 results.

WPP shares fell 18% in response, trading at 633.13 pence early Thursday in London. It was the worst performer in the FTSE 100 index, which itself was marginally lower.

The London-based advertising agency reported revenue less pass-through costs of £11.36 billion for 2024, down 4.2% from £11.86 billion in 2023. On a like-for-like basis, this was down 1.0%. Total revenue was £14.74 billion, down 0.7% from £14.85 billion, though up 2.3% on a like-for-like basis.

Looking ahead, WPP said its expects like-for-like revenue less pass-through costs to be flat to down 2% in 2025, with performance improving in the second half.

More positively, pretax profit was £1.03 billion in 2024, multiplying from £346 million in 2023. Operating profit also jumped, to £1.33 billion from £531 million, as operating profit margin improved to 9.0% from 3.6%.

However, on a headline basis, operating profit slipped 2.5% to £1.71 billion in 2024 from £1.75 billion in 2023, as headline operating profit margin improved only slightly to 15.0% from 14.8%.

In 2025, headline operating profit margin is expected to remain flat, WPP said.

WPP declared a 39.4 pence final dividend, unchanged from a year before. This means a full-year dividend of 39.4p, also unchanged. WPP had been expected to cut its annual dividend to 37.70p, according to market consensus cited by the Financial Times.

‘Though we remain cautious given the overall macro environment, we are confident in our medium-term targets,’ said Chief Executive Officer Mark Read, citing in particular WPP’s investments in artificial intelligence, data, and proprietary media.

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