WPP eyes AI-driven growth after missing estimates
WPP has delivered a mixed set of full-year results today. The group reported an unexpected revenue decline despite a slight rise in operating profit.
Revenue less pass-through costs dipped by just one per cent on a like-for-like basis, with its fourth quarter down 2.3 per cent due to weak client spending.
Headline operating profit reached £1.7bn, while adjusted free cash flow rose to £738m, underpinned by strong working capital management.
The company reported a 15 per cent operating margin, up 0.4 per cent points on a like for like basis.
This was driven by £85m in structural cost savings, primarily from the restructuring of Burson, Group M and VML, alongside disciplined cost control and a continued investment in AI and data.
Its UK market saw a sharp 5.1 per cent decline, while its key North American market slumped by just 1.4 per cent.
While its media division, GroupM, remained resilient, this was offset by an almost four per cent decline at the firm’s other global integrated agencies.
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