Wpp Plc Stock Price, News & Analysis

WPP (NYSE: WPP) reported its 2024 Preliminary Results, showing mixed performance with margin improvements despite revenue challenges. The company posted a -0.7% reported revenue but achieved +2.3% like-for-like (LFL) revenue growth. Revenue less pass-through costs declined -4.2%, with LFL at -1.0%.

Key financial highlights include:

• Headline operating profit of £1,707m with margin improvement to 15.0%
• Structural cost savings of £85m from Burson, GroupM and VML initiatives
• Adjusted operating cash flow increased to £1,460m
• Adjusted net debt reduced by £0.8bn to £1.7bn

Strategic progress includes simplifying to six agency networks representing 92% of WPP, increasing AI investment in WPP Open to £300m, and achieving significant client wins including Amazon, J&J, Kimberly-Clark and Unilever. For 2025, WPP guides LFL revenue less pass-through costs of flat to -2% with performance expected to improve in second half.

WPP and Amazon Music have launched 'Louder Than Cancer,' a groundbreaking campaign featuring top artists like Melissa Etheridge, Imagine Dragons, H.E.R., and Blake Shelton to support World Cancer Day. The initiative builds on 'The Most Beautiful Sound' campaign, which recorded cancer cells being destroyed.

The campaign includes a dedicated Amazon Music playlist where $1 will be donated for every stream (up to $100,000) to Conquer Cancer®, the ASCO Foundation, through Amazon's Stream It Forward Program. The project incorporates personal stories from artists and the sound of cancer cells being destroyed, originally developed by Grey Health with Harvard Medical School and Massachusetts General Hospital researchers.

The campaign features custom merchandise with dynamic soundwave designs and is being promoted through various channels, including FireTV and Times Square billboards. The initiative includes participation from over 35 artists across different genres.

TruGreen, the leading US lawncare provider, launched a new creative campaign featuring PGA TOUR players Jason Day, Ben Griffin, and Patton Kizzire, developed by VML. The campaign showcases how TruGreen-treated lawns are so exceptional they attract professional golfers.

The campaign includes two main spots: 'TeaTime', featuring a family's backyard transformed into an impromptu golf course, and 'Croquet', showing homeowners playing with Jason Day. The campaign emphasizes TruGreen's ability to deliver golf course quality lawns for as little as $1 per day, backed by local expertise.

The campaign will be distributed through traditional broadcast TV and streaming platforms, including season three of Netflix's Full Swing, launching February 3, 2025.

CMI Media Group, a WPP healthcare marketing agency, has partnered with Anoki AI to launch the first-ever AI-powered contextual advertising campaign for pharmaceutical Connected Television (CTV) advertising, targeting both direct-to-consumer (DTC) and healthcare provider (HCP) audiences.

The partnership utilizes Anoki AI's ContextIQ technology, which analyzes CTV content at the scene level to match ads with relevant content and viewer engagement patterns. This collaboration aims to enhance pharmaceutical ad targeting precision while maintaining privacy compliance, going beyond traditional genre-based contextual advertising to deliver messages at optimal viewing moments.

WPP reported Q3 2024 results with like-for-like growth of 0.5% in revenue less pass-through costs. Key highlights include Q3 revenue of £3.558bn (+1.4% reported, +4.1% LFL) and significant client wins including Amazon media (ex Americas), Unilever (media and creative), and Starbucks (US creative). GroupM showed improved performance with 4.8% growth, while integrated creative agencies declined 3.1%. Regional performance varied with North America +1.7%, Western Continental Europe +2.2%, UK flat, and Rest of World -2.2%, notably impacted by China's -21.3% decline. The company maintained its 2024 guidance of -1% to 0% LFL revenue growth and 20-40bps headline operating profit margin improvement.

WPP (NYSE: WPP) announced its 2024 Interim Results, showing sequential improvement in Q2's like-for-like (LFL) growth. Key highlights include:

Revenues at £7.227bn, a 0.1% increase, with LFL revenue rising 2.6%. Revenue less pass-through costs decreased by 3.6% to £5.599bn. Reported operating profit grew 38.2% to £423m, while diluted EPS surged 82.5% to 18.8p.

Q2 LFL revenue less pass-through costs fell 0.5%, with growth in North America (+2.0%) and Western Continental Europe (+0.3%), offset by declines in the UK (-5.3%) and China (-24.2%).

WPP's sale of its majority stake in FGS Global to KKR at a $1.7bn valuation will generate £604m in cash proceeds to reduce leverage, targeting a net debt to EBITDA ratio of 1.60x. The interim dividend remains at 15.0p per share.

Full-year guidance adjusted to -1% to 0% LFL revenue growth due to macro pressures and weakness in China.

WPP (NYSE: WPP) has announced the appointment of Philip Jansen as Non-Executive Director and Chair-designate, effective September 16, 2024. Jansen will succeed Roberto Quarta as Non-Executive Chair on January 1, 2025. Jansen, former CEO of BT Group and Worldpay, brings extensive experience in technology, consumer goods, and organizational transformation. The appointment, recommended by the Nomination and Governance Committee, aims to leverage Jansen's marketing background and technology expertise to support WPP's future growth. Jansen will receive annual fees of £575,000 and join the Compensation and Nomination and Governance Committees. Roberto Quarta will retire from the Board on December 31, 2024, after nine years of service.

VTEX (NYSE: VTEX), a leading digital commerce platform, has partnered with H Mart, the largest Asian-American supermarket chain in the U.S., to modernize its ecommerce operations. Collaborating with VML, a global creative agency, VTEX completed the migration from H Mart's legacy system to a new SaaS platform in just seven months. The platform now supports consolidated shopping for both shelf-stable and fresh goods, improving real-time inventory visibility and efficient order fulfillment. This partnership signifies a major step in H Mart's digital transformation, aiming to enhance the online shopping experience for its customers.

WPP has been named Creative Company of the Year for 2024 at the Cannes Lions International Festival of Creativity. Ogilvy, part of WPP, won Creative Network of the Year, while their client, The Coca-Cola Company, was named Creative Brand of the Year for the first time. WPP agencies amassed 160 Lions, including prestigious awards like Titanium, 6 Grand Prix, 27 Gold, 43 Silver, and 83 Bronze Lions, with winners from 41 different countries. This follows Unilever being named Creative Marketer of the Year in May 2024. Notable wins include Ogilvy’s DAVID for JCDecaux’s Meet Marina Prieto, WPP Open X for Coca-Cola's Recycle Me, and Grey for Sol Cement’s Sightwalks. GroupM, WPP’s media agencies, also performed strongly, earning 90 Lions. CEO Mark Read, Chief Creative Officer Rob Reilly, and Ogilvy’s Global CEO Devika Bulchandani expressed their pride in these achievements.