WPP's Q1 results dip, tariffs not expected to directly impact the network

Source: © Ask Traders Ask traders WPP CEO Mark Read says WPP's financial performance in Q1 was in line with expectations, and performance is anticipated to improve in the second half

Read also noted that while WPP is not itself directly affected by tariffs, they will impact a number of their clients as well as the broader economy.

"At this point, we have not seen any significant change in client spending and we reiterate our full-year guidance which already reflected a challenging environment. As ever, we remain agile and vigilant and will continue to be disciplined on how we are managing our cost base.”

Q1 performance as expected

Performance in the quarter is consistent with expectations and guidance given at the preliminary results in February.

Q1 revenue of £3,243m was down 5.0% YoY on a reported basis and down 0.7% like-for-like (LFL), while revenue less pass-through costs of £2,482m was down 2.7% LFL.

While elevated macro uncertainty is noted in the near-term, the network continues to expect 2025 LFL revenue less pass-through costs of flat to -2% and around flat headline operating profit margin (excluding the impact of FX).

Strategioc priorities

Read says they continue to make solid progress on their strategic priorities.

"With the internal focus of integration behind them, VML and Burson are seeing renewed momentum in new business with Generali, Heineken and Levi Strauss & Co important wins during the quarter.

"The acquisition of InfoSum and its integration into GroupM’s data offer accelerates our AI-driven data approach, leapfrogging traditional identity-based solutions.

"We are also on track with the continued adoption of WPP Open across the organisation with 48,000 of our people (c.60% of client-facing staff) using it in March vs. 33,000 in December.