WPP (WPP) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue less pass-through costs declined 2.7% like-for-like, in line with expectations amid a challenging macro environment and historical client losses.

• Strategic progress included the acquisition of InfoSum to enhance AI-driven data capabilities, growing adoption of WPP Open, and new business wins such as Heineken, EA, and Levi Strauss.

• Business remains globally diversified, with a focus on execution, cost discipline, and top client growth.

Financial highlights

• Q1 2025 revenue less pass-through costs was £2,482m, down 7.6% reported and 2.7% like-for-like, impacted by FGS Global disposal, FX headwinds, and lower project-based spending.

• Adjusted net debt at March 2025 was £3.7bn, with average adjusted net debt at £3.4bn; available liquidity stood at £2.9bn.

• Top 25 clients grew 2.5% in Q1, with strength in CPG and Tech & Digital Services.

• Headline operating margin expected to be broadly flat for the year, excluding FX impact.

Outlook and guidance

• Full-year like-for-like revenue less pass-through costs guidance maintained at flat to -2%, with improvement anticipated in H2 as new business ramps up.

• M&A expected to reduce revenue less pass-through costs by ~3 points, mainly due to FGS Global disposal; FX to be a ~2% drag.

• Capex around £250m, cash restructuring costs ~£110m, and adjusted operating cash flow before working capital ~£1.4bn.