- WPP’s like-for-like (LFL) revenue less pass-through costs decreased by 2.7% in Q1 2025, missing the estimated decline of 2.34%.
- Total revenue was GBP 3.24 billion, slightly below the projected GBP 3.27 billion.
- Revenue less pass-through costs amounted to GBP 2.48 billion, missing the estimated GBP 2.54 billion.
- In North America, revenue less pass-through costs fell by 6% year-over-year to GBP 992 million, slightly under the estimate of GBP 1 billion.
- UK revenue less pass-through costs were GBP 368 million, showing a 3.9% decline year-over-year, in line with the estimate.
- Western Europe saw a significant 12% year-over-year drop in revenue less pass-through costs to GBP 487 million, missing the estimate of GBP 534.7 million.
- The Rest of the World sector experienced an 8.4% reduction in revenue less pass-through costs, totaling GBP 635 million, compared to the estimate of GBP 647.5 million.
- Global Integrated Agencies recorded a 3.8% decline in revenue less pass-through costs to GBP 2.12 billion, short of the GBP 2.15 billion estimate.
- Public Relations faced a sharp 39% year-over-year decrease in revenue less pass-through costs, totaling GBP 167 million, against an estimate of GBP 194.5 million.
- Specialist Agencies saw a 6.2% drop in revenue less pass-through costs to GBP 196 million, missing the expected GBP 202.2 million.
- The year forecast anticipates a LFL revenue less pass-through costs ranging from a 2% decline to flat growth, with a current estimate of a 1.04% decline.
- WPP maintains its forecast for capital expenditure at around GBP 250 million.
- The company reaffirms its guidance for 2025, expecting performance improvements in the second half of the year.
- The headline operating profit margin for the full year is anticipated to remain flat, excluding foreign exchange effects.
- WPP expects macroeconomic challenges to persist into the second quarter of 2025.
- Although WPP is not directly impacted by tariffs, they are expected to affect clients and the broader economy.
- There has been no significant change observed in client spending.
- Mergers and Acquisitions (M&A) are projected to reduce 2025 revenue less pass-through costs by approximately 3.0 points, primarily due to the disposal of FGS Global.
A look at WPP PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
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
Analysts using Smartkarma Smart Scores have assessed WPP PLC‘s long-term outlook by evaluating different factors. WPP PLC, a communications services group, received a mixed bag of scores which may impact its future performance. While the company scored high in the Dividend factor with a 5, indicating a strong payout to shareholders, it lagged behind in Resilience and Momentum with scores of 2, suggesting potential challenges in weathering economic uncertainties and maintaining growth momentum. These scores provide valuable insights into WPP PLC‘s overall outlook in the market.
Despite a strong emphasis on dividend payouts, WPP PLC‘s Smart Scores reveal a need for improvement in areas such as Growth and Momentum. With operations spanning across various communication services, the company’s ability to adapt to changing market trends and maintain a competitive edge will be crucial for its long-term success. Investors monitoring WPP PLC should consider a holistic view of the company’s scores to make informed decisions regarding their investment strategies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
