WPP’s Q1 revenue dipped 5.0% YoY to £3,243m and down 0.7% like-for-like (LFL) amid a macroeconomic challenges.
The multinational communications company reported revenue less pass-through costs of £2,482m was down 2.7% LFL, consistent with expectations and guidance given at the preliminary results in February.
While they note elevated macro uncertainty in the near-term, they continue to expect 2025 LFL revenue less pass-through costs of flat to -2% and around flat headline operating profit margin (excluding the impact of FX).
‘We remain agile and vigilant and will continue to be disciplined’: Outlook for WPP
Mark Read, Chief Executive Officer of WPP, had a pragmatic view on the company’s Q1 performance and outlook ahead.
He said: “We continue to make solid progress on our strategic priorities. With the internal focus of integration behind them, VML and Burson are seeing renewed momentum in new business with Generali, Heineken and Levi Strauss & Co important wins during the quarter.
“The acquisition of InfoSum and its integration into GroupM’s data offer accelerates our AI-driven data approach, leapfrogging traditional identity-based solutions. We are also on track with the continued adoption of WPP Open across the organisation with 48,000 of our people (c.60% of client-facing staff) using it in March vs. 33,000 in December.
Mark Read: “We continue to make solid progress on our strategic priorities.”
Read added: “Our financial performance in Q1 was in line with our expectations, reflecting macroeconomic challenges and the timing of new business, and we expect these factors to continue in Q2 with performance anticipated to improve in the second half.
“While WPP is not itself directly affected by tariffs, they will impact a number of our clients as well as the broader economy. At this point we have not seen any significant change in client spending and we reiterate our full-year guidance which already reflected a challenging environment.
“As ever, we remain agile and vigilant and will continue to be disciplined on how we are managing our cost base,” Read added.