WPP has released its trading update for the first quarter of 2025, revealing a decline in revenue against the backdrop of challenging macroeconomic conditions.
The company reported revenue of £3,243 million, representing a 5.0% decrease on a reported basis and a 0.7% decline on a like-for-like basis compared to the same period last year.
Revenue less pass-through costs, a key performance metric for the firm, stood at £2,482 million, down 7.6% on a reported basis and 2.7% on a like-for-like basis.
Despite the soggy start to the year, the advertising giant said that performance was in line with expectations outlined during February’s preliminary results announcement.
The organisation has reiterated its full-year guidance for 2025, projecting like-for-like revenue less pass-through costs to range between flat and -2%, with headline operating profit margin expected to remain approximately flat, excluding foreign exchange impacts.
WPP shares were 0.2% higher at the time of writing.
“In a fiercely competitive advertising arena, WPP is struggling to spark fresh ideas that could kickstart its return to growth,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“With this weakness set to continue into the second quarter, WPP’s leaving itself a lot of work to do late in the year, and there could be room for disappointment as the year progresses.
“Add to that the fallout from recent US-led tariffs, which have sparked major uncertainty across global markets. If they cause an economic slowdown, and WPP’s customers need to rein in their costs, advertising budgets will likely be one of the first things on the chopping block. WPP hasn’t seen client behaviours change yet in response to tariffs, but the picture can change quickly.”