WPP Reports Full-Year and Q4 Financial Results, Outlines 2025 Strategy

Financial Performance Overview

WPP has released its full-year and Q4 financial results, reporting a mixed performance with areas of growth and challenges. The company posted a slight decline in full-year reported revenue at -0.7%, while like-for-like (LFL) revenue saw an increase of 2.3%. However, revenue less pass-through costs declined by 4.2% on a reported basis and 1.0% on an LFL basis.

For Q4, LFL revenue less pass-through costs dropped by 2.3%, with growth in Western Continental Europe (+1.4%) offset by declines in North America (-1.4%), the UK (-5.1%), and the Rest of the World (-4.8%). China, in particular, experienced a sharp decline of 21.2%.

Segment-Wise Performance

Global Integrated Agencies reported an FY LFL revenue decline of 0.8%, with Q4 showing a sharper drop of 2.2%. Within this, GroupM, WPP’s media planning and buying arm, grew by 2.7% for the year and 2.4% in Q4, while other Global Integrated Agencies saw a 3.9% decline in FY and 6.5% in Q4.

Despite revenue challenges, WPP’s headline operating profit stood at £1.707 billion, with an improved operating margin of 15.0%, up from 14.8% in 2023. The improvement was driven by structural cost savings of £85 million from key initiatives at Burson, GroupM, and VML, as well as disciplined cost control and investments in AI and data capabilities. Reported operating profit surged 149.5% to £1.325 billion, benefiting from lower amortization charges and higher gains on disposals.

WPP also saw strong cash flow performance, with adjusted operating cash flow increasing to £1.46 billion (from £1.28 billion in 2023) and adjusted free cash flow rising to £738 million (from £637 million). Adjusted net debt reduced by £800 million year-on-year, standing at £1.7 billion as of December 31, 2024. The company has proposed a final dividend of 24.4p per share, maintaining the level from 2023.

Strategic Priorities and Achievements

WPP made significant progress in 2024 on its strategic transformation:

Simplified Client-Facing Structure: The company streamlined operations to six agency networks, representing 92% of its business, creating a more integrated offering across creative, production, commerce, and media.

Investment in AI and Technology: AI, data, and technology played a crucial role in client services and new business wins, including contracts with Amazon, J&J, Kimberly-Clark, and Unilever. The company increased its annual investment in AI and WPP Open to £300 million, up from £250 million.

Operational Efficiency: Stronger operating margins, enhanced cash conversion, and balance sheet improvements contributed to WPP’s financial stability.

2025 Outlook and Priorities

WPP has set key strategic objectives for 2025:

Leadership in AI, Data, and Technology: The company will continue investing in WPP Open, ensuring it remains at the forefront of AI advancements and expanding its deployment across the business and client offerings.

Accelerating Growth through Creative Transformation: WPP aims to drive business transformation for clients by offering an integrated approach across creative, production, commerce, and media.

Strengthening Media Capabilities: The company will focus on improving its media competitiveness globally, with a particular emphasis on the US market.

Enhancing Financial Efficiency: Operational efficiency and optimized investment allocation will remain central to driving financial returns.

WPP’s guidance for 2025 projects LFL revenue less pass-through costs to be flat to -2%, with expected improvements in the second half of the year. Headline operating profit margin is anticipated to remain stable, excluding foreign exchange impacts.

CEO Statement: Confidence in Long-Term Growth

Mark Read, Chief Executive Officer of WPP, highlighted the company’s strategic progress, stating:

“We achieved significant progress against our strategy in 2024 with the creation of VML, Burson, and the simplification of GroupM—representing 70% of our business. We also sold our stake in FGS Global, creating significant value for shareholders. At the same time, we increased our margin while ramping up our investment in AI through WPP Open, which is now used by 33,000 people across WPP.”

However, Read acknowledged the revenue challenges, particularly in Q4, due to weaker discretionary spending. Despite this, he noted 2% growth from WPP’s top 25 clients and a stronger new business performance in H2, with major wins from Amazon, J&J, Kimberly-Clark, and Unilever.

“The actions we are taking will strengthen our client relationships and drive new business results. While we expect some improvement in our creative agencies, we are also enhancing our competitive positioning at GroupM, making further investments in AI, data, and proprietary media. Though we remain cautious given the macroeconomic environment, we are confident in our medium-term targets and believe our focus on innovation, a simplified client-facing offer, and operational excellence will support our growth and deliver greater value for our shareholders.”

WPP’s continued investments in AI, streamlined operations, and a client-centric approach are expected to position the company for improved performance in 2025, despite prevailing economic uncertainties.