WPP Q1 Revenue Down 5% as Macroeconomic Challenges Weigh

WPP (LON: WPP) reported a 5% year-on-year drop in first-quarter revenue to £3.24 billion, as macroeconomic headwinds and the timing of new business impacted performance. 

On a like-for-like basis, revenue declined 0.7%, while revenue less pass-through costs fell 2.7%.

The advertising giant noted that its results were consistent with expectations and reiterated its full-year outlook for flat to -2% like-for-like revenue less pass-through costs, and a broadly stable headline operating margin excluding foreign exchange effects.

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Chief Executive Mark Read acknowledged the difficult environment but emphasised strategic progress. 

“We continue to make solid progress on our strategic priorities,” he stated. “Our financial performance in Q1 was in line with our expectations, reflecting macroeconomic challenges and the timing of new business, and we expect these factors to continue in Q2, with performance anticipated to improve in the second half.”

Read also highlighted renewed business momentum at VML and Burson following internal restructuring, citing client wins including Generali, Heineken and Levi Strauss & Co.

Meanwhile, when it comes to tariffs implemented by the US, WPP said it is not directly exposed, but it will impact several clients. 

“We have not seen any significant change in client spending,” Read commented, adding that performance is expected to improve in the second half.