WPP Expects 2024 Return to Growth after Battling Q1

WPP has issued a first quarter trading update, with like-for-like revenue less pass-through costs down 1.6% to £2.69bn. CEO Mark Read said the results were in line with expectations, reflecting tough comparatives, and that the firm 'remains on track to return to growth in the balance of the year'.

The marcoms giant, which is still a large minority shareholder in Kantar and owns a number of other insight and data businesses, saw growth in the UK and continental Europe, offset by declines in North America and Asia Pacific. Within the last of these, decline in China counterbalanced strong growth in India.

CEO Read stated: 'The first quarter of 2024 was very much in line with our expectations with performance reflecting the toughest comparator of the year.

'Structurally, VML is now well established and is on track to deliver savings. GroupM is progressing well with its simplification and Burson will be operational in July. I'm very pleased with the progress we are making and we are already seeing the benefits of a simpler and more agile structure for our clients.

'Our outlook for the full year is reiterated. We remain on track to return to growth in the balance of the year, supported by an encouraging new business pipeline and the strength of our business creatively and in media, both powered by new AI capabilities, while our simpler structure will drive organisational flexibility and stronger cash conversion'.

The group reported a flat year in 2023, with revenue of £11.86bn and operating profit down more than 60% to £531m.

Web site: www.wpp.com .