25th Apr 2025 08:27
(Alliance News) - WPP PLC on Friday said it had not seen any significant change in client spending despite the uncertain economic backdrop.
The London-based advertising agency reported revenue of GBP3.24 billion for the first quarter of 2025, down 5.0% from GBP3.41 billion a year before. On a like-for-like basis revenue fell 0.7%.
Excluding pass-through costs, revenue declined 7.8% to GBP2.48 billion the three months that ended March 31 from GBP2.69 billion a year prior, or by 2.7% on a LFL basis.
"Our financial performance in [the first quarter] was in line with our expectations, reflecting macroeconomic challenges and the timing of new business, and we expect these factors to continue in [the second quarter] with performance anticipated to improve in the second half." said Chief Executive Officer Mark Read.
WPP continues to expect 2025 LFL revenue less pass-through costs of flat to down 2% and around flat headline operating profit margin, excluding the impact of foreign exchange.
In 2024, WPP reported revenue less pass-through costs of GBP11.36 billion and an operating profit margin of 9.0%.
"While WPP is not itself directly affected by tariffs, they will impact a number of our clients as well as the broader economy, CEO Read cautioned.
But he added that so far WPP has not seen any "significant" change in client spending.
Read pointed to "solid progress" in the quarter, noting VML and Burson are seeing renewed momentum in new business with Assicurazioni Generali SpA, Heineken NV and Levi Strauss & Co important wins during the quarter.
Shares in WPP were up 0.4% at 562.20 pence in London on Friday morning. The wider FTSE 100 index was little changed in early trading.
By Jeremy Cutler, Alliance News reporter
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