Wpp Plc · LSE:WPP
Wpp — Q1 2025 Earnings Presentation
25 slides from Wpp's earnings presentation, Apr 25, 2025
Slide 1: Q1 Trading Update
Q1 TRADING UPDATE 25 April 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This document contains statements that are, or may be personnel; delays, suspensions or reductions in client revenues are derived and costs incurred outside of the UK); deemed to be, “forward-looking statements”. Forward- advertising budgets;
Slide 3: Overview, Financial performance, Strategic progress, Q&A
• Overview • Financial performance • Strategic progress • Q&A 3
Slide 4: Overview
OVERVIEW Q1 2025 performance Challenging market Continued strategic WPP Open WPP Open WPP Open as expected environment progress Tariff related uncertainty Growing adoption of -2.7% amplifies an already WPP Open uncertain environment GroupM proposition Like-for-like revenue less strengthened wi
Slide 5: Financial Performance
FINANCIAL PERFORMANCE
Slide 6: Q1 2025 Revenue Less Pass-Through Costs
Q1 2025 REVENUE LESS PASS-THROUGH COSTS £M % % % % Revenue less pass- reported M&A FX Like-for-like through costs 2,482 (7.6) (3.7) (1.2) (2.7) • M&A impact driven by the disposal of FGS Global • FX headwind largely due to Euro weakness • Like-for-like decline continues to reflect historical client
Slide 7: Performance by Business
PERFORMANCE BY BUSINESS1 LFL REVENUE LESS PASS-THROUGH COSTS GROWTH Q1 ’25 (Q1 ’24) • Global Integrated Agencies: Specialist Agencies o GroupM: historical client losses in the +1.2% (Q1 ’24: -7.6%) UK, weakness in Europe and a challenging environment in China, masked growth in North America 8% 7% o
Slide 8: Performance by Region
PERFORMANCE BY REGION1 LFL REVENUE LESS PASS-THROUGH COSTS GROWTH Q1 ‘25 (Q1 ’24) • North America: o USA: flat from continued pressures on project-based work offset by better AP, LA, AME, CEE2 North America spend in Auto, Tech and Healthcare -3.8% (Q1 ’24: -0.6%) -0.1% (Q1 ’24: -5.2%) 25% • UK: ongo
Slide 9: Performance by Client Sector
PERFORMANCE BY CLIENT SECTOR 1 LFL REVENUE LESS PASS-THROUGH COSTS Q1 ‘25 (Q1 ‘24) +2.5% 3% Top 25 clients’ 3% growth 4% Telecom, media & 6% CPG +0.3% (+9.5%) entertainment -4.8% (+6.8%) 28% Financial services +2.6% (-0.9%) 6% Tech & digital services +4.5% (-9.0%) Other -13.9% (-14.8%) Healthcare &
Slide 10: Net Debt
NET DEBT £M MAR ‘24 DEC ’24 MAR ’25 Adjusted net debt (4,000) (1,690) (3,652) Average adjusted net debt1 (3,668) (3,485) (3,381) Available liquidity 3,433 4,464 2,937 • Includes £3.8bn equivalent of bond debt at a weighted average maturity of 7 years and an average coupon of 3.6% • Moody’s credit ra
Slide 11: 2025 Guidance
2025 GUIDANCE Like-for-like revenue less pass-through costs growth of flat to -2%, with performance expected to improve in the second half Headline operating margin expected to be around flat year-on-year (excluding the impact of FX) Other FY 2025 financial indications: • Mergers and acquisitions wi
Slide 12: Strategic Progress
STRATEGIC PROGRESS
Slide 13: Market Environment
MARKET ENVIRONMENT ECONOMIC ASYMMETRIC CLIENTS CONTINUE AI IMPACT UNCERTAINTY IMPACT TO INVEST impacting business and US vs RoW? in an unpredictable on marketing increasing consumer confidence context 13
Slide 14: 2025 Priorities: A Year of Execution – Progress in Q1
2025 PRIORITIES: A YEAR OF EXECUTION – PROGRESS IN Q1 Drive creative WPPWPP Open Open GroupM GroupM New Business transformation 48,000 WPP users (Dec ‘24: 33,000) Media Media Media 10%+ Uplift on new business conversion Acquisition of InfoSum Commerce Creative Creative (compared with non-WPP Open pi
Slide 15: 2025 Priorities: Improving GroupM – InfoSum Acquisition
2025 PRIORITIES: IMPROVING GROUPM – INFOSUM ACQUISITION The world’s leading data Drive creative clients to unlock Empowering A strategic step forward for WPP Open collaboration platform GroupM the full value of their 1P data WPP's AI-driven data offer transformation • Trusted by the world’s leading
Slide 16: Summary
SUMMARY • Q1 performance as expected • A diversified global business • Continued strategic progress 16
Slide 17: Q&A
Q&A
Slide 18: Contacts and Further Resources
CONTACTS AND FURTHER RESOURCES THOMAS SINGLEHURST INVESTOR WEBSITE Group Investor Relations Director wpp.com/investors [email protected] Tel: +44 (0) 7876 431 922 CAPITAL MARKETS DAY 2024 Materials linked here ANTHONY HAMILTON Investor Relations Director INVESTOR WEBINARS anthony.hamilton@w
Slide 19: Appendix
APPENDIX
Slide 20: New Business
NEW BUSINESS RECENT NEW CLIENT ASSIGNMENTS1,2 Shopper Marketing Media Media Media Media Influencer and Commerce Global UK India Australia Australia & New Global Zealand Creative Creative Creative Creative Creative PR Global Global US US Germany US 1. Includes new clients and expanded scope won along
Slide 21: Regions and Top 10 Markets
REGIONS AND TOP 10 MARKETS LIKE-FOR-LIKE REVENUE LESS PASS-THROUGH COSTS GROWTH (Q1 ’25) Central & Eastern Europe +2.0% UK -5.5% North America -0.1% o/w US 0.0% o/w Canada -1.8% Western Continental Europe -4.5% o/w Germany -5.0% Asia Pacific -5.7% o/w France -9.2% o/w China -17.4% o/w Spain -1.0% o/
Slide 22: Exchange Rate Analysis
EXCHANGE RATE ANALYSIS STERLING IMPACT OF FX ON REVENUE LESS PASS-THROUGH COSTS GROWTH FIRST QUARTER 2025 2024 (WEAKER)/STRONGER US$ 1.26 1.27 (0.8%) Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 € 1.20 1.17 2.6% Indian Rupee 109.13 105.30 3.6% (1.2%) Chinese Renminbi 9.17 9.12 0.5% (1.9%) Brazilian Real 7.37
Slide 23: Recognition
RECOGNITION rE nie WPP ‘WPP 23
Slide 24: Medium-Term Financial Framework
MEDIUM-TERM FINANCIAL FRAMEWORK Like-for-like Headline Adjusted Operating Cash Average Net Debt / Revenue less pass- Operating Margin Flow Conversion Headline EBITDA1 through costs growth DISCIPLINED CAPITAL ALLOCATION Potential for M&A to accelerate growth by up to 1% p.a. 1. Average adjusted net d
Slide 25: Thank You
i e, THANK YOU