WPP 2024 Interim Results

In This Article:

Sequential improvement in LFL growth in Q2. Strong progress against January 2024 strategic objectives and significant value unlocked from sale of majority stake in FGS Global. Full year LFL guidance now -1% to 0% reflecting macro pressures and weakness in China

NEW YORK & LONDON, August 07, 2024--(BUSINESS WIRE)--WPP (NYSE: WPP) today reported its 2024 Interim Results.

Key figures (£m)

H1 2024

+/(-) %
reported1

+/(-) %
LFL2

H1 2023

 

 

 

 

 

Revenue

7,227

0.1

2.6

7,221

Revenue less pass-through costs

5,599

(3.6)

(1.0)

5,811

 

 

 

 

 

Reported:

 

 

 

 

Operating profit

423

38.2

 

306

Operating profit margin3

5.9 %

1.7 pt

 

4.2 %

Diluted EPS (p)

18.8

82.5

 

10.3

Dividends per share (p)

15.0

0.0

 

15.0

 

 

 

 

 

Headline4:

 

 

 

 

Operating profit

646

(3.0)

0.5

666

Operating profit margin

11.5 %

0.0pt

0.1pt

11.5 %

Diluted EPS (p)

30.9

(6.6)

 

33.1

H1 and Q2 highlights

  • H1 reported revenue +0.1%, LFL revenue +2.6%. H1 revenue less pass-through costs -3.6%, LFL revenue less pass-through costs -1.0%

  • Q2 LFL revenue less pass-through costs -0.5%, with North America +2.0% and Western Continental Europe +0.3%, offset by the UK -5.3% and Rest of World -2.2%, with growth in India +9.1% offset by a decline in China -24.2%

  • Global Integrated Agencies Q2 LFL revenue less pass-through costs fell 0.6% with GroupM growing 1.4%, offset by a 2.4% decline at integrated creative agencies

  • Top ten clients5 grew 2.5% in H1. CPG, TME6 and automotive client sectors grew well in Q2. Technology client sector stabilising, with a decline of 1.0% LFL in Q2, an improvement from Q1’s -9.0%. Healthcare and retail sectors impacted by 2023 client losses

  • Strong progress on strategic initiatives with new products and solutions launched within WPP Open, our AI-powered marketing operating system, and Burson, GroupM and VML on track to deliver targeted savings

  • Agreement to sell WPP’s majority stake in FGS Global to KKR at an enterprise valuation of $1.7bn, generating total cash proceeds to WPP of c.£604m7 after tax. Proceeds will be used to reduce leverage, implying pro-forma average net debt to EBITDA of c.1.60x8, comfortably within the range of 1.50-1.75x

  • H1 headline operating profit £646m. Headline operating margin of 11.5% (H1 2023: 11.5%), up 0.1pt LFL, reflecting disciplined cost management as we continue to invest in our proposition. H1 reported operating profit £423m up 38.2%, reflecting the above factors and lower restructuring costs of £153m (H1 2023: £267m)

  • $1.7bn net new billings9 (H1 2023: $2.0bn), with Q2 net new billings $0.9bn (Q2 2023: $0.5bn). New client wins included assignments for AstraZeneca, Colgate-Palmolive, J&J and Government of Canada