WPP’s shares tumbled by 18% during early trading hours on Thursday (Feb. 27) following disappointing 2024 results and a weak outlook for this year.
The numbers
$14.38 billion (£11.35 billion) – revenue less pass-through costs in 2024, down 1% on a like-for-like basis.
2.3% – decline in Q4 revenue less pass-through costs.
0 to 2% – WPP’s forecasted organic revenue decrease for 2025.
Watercooler talk
The results of the world’s largest advertising group fell short of analyst expectations, which had forecast a 0.4% drop in 2024 net revenue.
Its performance also trailed rivals Publicis Groupe, which closed 2024 with organic revenue growth of 5.8% year-over-year, and Omnicom Group, which netted 5.2% organic growth in 2024.
Key quote
“We expect some improvement in the performance of our integrated creative agencies in the year ahead. At the same time, we have comprehensive efforts underway to improve our competitive positioning through new leadership at GroupM, with further investment in AI, data, and proprietary media,” WPP chief executive (CEO) Mark Read said.
“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.”
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