- WPP projects its like-for-like (LFL) adjusted revenue growth for 2025 to range between -2% and 0%, contrasting with earlier estimates of a 2% increase.
- The company’s capital expenditure forecast for 2025 is approximately GBP250 million.
- In 2024, WPP reported revenue less pass-through costs of GBP11.36 billion, a decline of 4.2% year-over-year, missing the estimate of GBP11.48 billion.
- North America’s revenue less pass-through costs decreased by 3.6% to GBP4.39 billion, exceeding the estimate of GBP4.35 billion.
- The UK and Western Europe experienced slight decreases in revenue, each slightly underperforming their estimates.
- The rest of the world saw an 8.1% decline, with revenue of GBP3.00 billion, below the anticipated GBP3.08 billion.
- The Global Integrated Agencies had a revenue of GBP9.38 billion, missing the GBP9.57 billion estimate.
- Public Relations experienced a significant drop of 7.7% in revenue, reaching GBP1.09 billion, short of the GBP1.13 billion projection.
- In contrast, Specialist Agencies reported GBP886 million in revenue, surpassing the estimated GBP845.6 million.
- Headline operating profit for 2024 slightly declined by 2.5% to GBP1.71 billion, aligning with expectations.
- Global Integrated Agencies achieved a headline operating profit of GBP1.48 billion, exceeding the estimate of GBP1.35 billion.
- Public Relations’ headline profit dropped by 13% to GBP166 million, below the GBP185.5 million forecast.
- Overall headline operating margin improved to 15%, surpassing last year’s 14.8% and the estimate of 14.9%.
- Net income decreased by 5.6% to GBP969 million, slightly above the estimate of GBP959.8 million.
- Headline earnings per share declined to 88.3p from 93.8p, in line with the estimate.
- The dividend per share remained unchanged at 39.4p, slightly above the expected 37.7p.
- Net debt significantly decreased by 32% to GBP1.7 billion from last year, better than the GBP1.89 billion estimate.
- Looking ahead, WPP anticipates LFL revenue performance to improve in the second half of 2025.
- The company plans to keep its 2025 headline operating profit margin flat, excluding currency effects.
- WPP acknowledges the macroeconomic challenges yet remains confident in its medium-term targets, maintaining a 3%+ LFL growth.
- The company is increasing its investment in WPP Open, with cash investment rising to £300 million in 2025, up from £250 million in 2024.
- In 2025, WPP anticipates cash restructuring costs of around £110 million.
- “Some improvement” is expected in the performance of its integrated creative agencies in 2025.
- 4Q 2024 was challenging due to weaker client discretionary spending.
A look at WPP PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, WPP PLC shows a promising long-term outlook. The company received a solid score of 4 for its Dividend and Momentum, indicating a strong performance in these areas. Additionally, WPP PLC scored a respectable 3 for Value and Growth, reflecting stability and potential growth. However, its Resilience score of 2 suggests some vulnerability in this aspect. Overall, WPP PLC‘s high marks in Dividend and Momentum coupled with satisfactory scores in Value and Growth bode well for its future prospects.
WPP PLC, a communications services group, operates across various sectors including advertising, media investment management, PR, healthcare, and branding services. With a diverse portfolio of services, WPP PLC is positioned to capitalize on the evolving needs of the market. The company’s Smartkarma Smart Scores highlight its strengths in Dividend and Momentum, while also indicating opportunities for improvement in resilience. Overall, WPP PLC‘s strategic positioning and solid performance in key areas point towards a positive trajectory in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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