- WPP
- 27 February 2025 08:35:34
Source: Sharecast
Revenue less pass-through costs was down 1% on a like-for-like basis at £11.35bn in FY24, missing analyst estimates for a smaller 04% decline, with Q4 revenues down 2.3% year-on-year.
The FTSE 100-listed firm said UK revenues were down 5.1% in Q4, while North American revenues slipped 1.4%. Chinese revenues crashed 21.2% during the final quarter of the year.
However, WPP said FY headline operating profits rose 2.0% on a like-for-like basis to £1.71bn, in line with market expectations, while adjusted free cash flow improved to £738.0m on the back of strong working capital management and an increase in operating profit margins from 14.8% to 15.0%.
As far as FY25 was concerned, WPP expects organic revenues to fall between 0% and 2%, with its overall performance likely to improve in H2.
"Though we remain cautious given the overall macro environment, we are confident in our medium-term targets and believe our focus on innovation, a simpler client-facing offer and operational excellence will support our growth and deliver greater value for our shareholders," said chief executive Mark Read.
WPP also stated it was now looking to expand its AI-powered platform, WPP Open, with AI investment increasing to £300.0m as it looks to increase its competitiveness in the market.
As of 0830 GMT, WPP shares had sunk 16.28% to 644.80p.
Reporting by Iain Gilbert at Sharecast.com