WPP PLC
LSE:WPP

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WPP PLC
LSE:WPP
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Price: 336.4 GBX 1.79% Market Closed
Market Cap: 3.6B GBX

WPP PLC
Investor Relations

In the dynamic world of global advertising, WPP PLC has established itself as an indispensable powerhouse. Emerging from the remnants of a previously obscure company, Wire and Plastic Products, WPP transformed into a dynamic entity that orchestrates integrated communication and marketing services worldwide. Operating under an expansive umbrella, it comprises a multitude of subsidiary companies, each specializing in different facets of marketing, from traditional advertising to cutting-edge digital strategies, market research, and public relations. Through its reach and diversity, WPP crafts comprehensive solutions for its clients, tailoring its services to meet the ever-evolving demands of consumer engagement in the modern era.

WPP makes money by leveraging its extensive network to provide a symbiosis of creative and media solutions. By uniting the expertise of its various subsidiaries, WPP offers seamless, end-to-end marketing campaigns that resonate with audiences globally. Through both agency fees and performance-based pricing models, the company draws revenue from the creation of compelling content and deployment across media platforms. Furthermore, its investment in data analytics and technological innovation ensures that WPP not only reacts to industry trends but arguably anticipates them, enhancing the effectiveness and efficiency of its services. In this blend of creativity, technology, and strategic execution, WPP cements its role as a vital conduit between brands and consumers, navigating both the digital and traditional landscapes of advertising.

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WPP
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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Aug 4, 2023
AI Summary
Q2 2023

Growth Slowdown: WPP reported resilient first-half like-for-like revenue growth of 2%, but growth slowed from 2.9% in Q1 to 1.3% in Q2, mainly due to weakness in US technology clients.

Regional Performance: Strong growth was seen outside the US, with the UK, Germany, and China all accelerating in Q2, while North America saw revenues decline by 4.1% in Q2.

Margin Discipline: Operating margin was 11.5%, flat year-on-year excluding FX, benefiting from disciplined cost control and reduced freelance costs, despite higher IT and severance expenses.

Guidance Revised: Full-year like-for-like revenue growth guidance was lowered to 1.5%–3% (from 3%–5%), but margin guidance was held at around 15%.

AI & Transformation: WPP is investing in AI, data, and technology platforms, highlighting progress with partnerships (like NVIDIA, Spotify) and ongoing cost transformation programs.

Technology Client Headwinds: The pullback in tech sector marketing spend in the US was sharper and more prolonged than expected, but management sees it as cyclical, not structural.

Key Financials
Revenue less pass-through costs
£5.8 billion
Like-for-like revenue less pass-through costs growth
2%
Operating margin
11.5%
Headline operating profit
£666 million
Headline diluted EPS
33.1 pence
Profit attributable to shareholders
£361 million
GroupM like-for-like growth
6.1%
Public Relations like-for-like growth
2.1%
UK revenue growth
8.2%
Germany revenue growth
5.4%
China revenue change H1
-4%
China revenue growth Q2
4.8%
India revenue growth H1
0.8%
US net sales change H1
-1.2%
US net sales change Q2
-4.5%
Dividend (interim)
£0.15
Net debt (June 2023)
Just over £3 billion
Forecast net debt (year-end 2023)
£2.5 billion
Average adjusted net debt-to-EBITDA ratio
1.68 times
CapEx guidance (2023)
£250 million
Transformation savings (annualized 2023)
At least £450 million
Restructuring costs (2023)
Around £400 million
Headline tax rate (H1 2023)
27%
Earnings Call Recording
Other Earnings Calls

Management

Mr. Mark Read CBE
CEO & Executive Director
No Bio Available
Ms. Joanne Wilson
CFO & Director
No Bio Available
Mr. Andrew Grant Balfour Scott
COO & Executive Director
No Bio Available
Mr. Stephan Pretorius
Chief Technology Officer
No Bio Available
Ms. Rachel Higham
Chief Information Officer
No Bio Available
Mr. Tom Waldron
Group Investor Relations Director
No Bio Available
Ms. Andrea Harris Esq.
Group Chief Counsel
No Bio Available
Mr. Chris Wade
Director of Communications & Corporate Affairs
No Bio Available
Mr. Laurent Ezekiel
Chief Marketing Officer & CEO of WPP Open X
No Bio Available
Mr. Christian Juhl
President of Corporate Development
No Bio Available

Contacts

Address
London
Sea Containers House, 18 Upper Ground
Contacts
+4402072824600.0
www.wpp.com