WPP PLC (LSE:WPP) shares plunged 18% to 634p as the advertising and marketing giant reported a lower top line for last year as client budgets remain constricted, leading it to predict that growth will not return in 2025.
Reported revenue for the 2024 came in at £14.7 billion, down 0.7%, but up 2.3% on a like-for-like basis.
Revenue less pass-through costs fell 4.2%, down 1% LFL. Fourth-quarter adjusted revenues of £11.36 billion were slightly below the analyst consensus forecast of £11.48 billion.
Operating profits fell 2.5% to £1.7 billion but were 2% higher on a LFL basis. For Q4, earnings per share came in at £0.88, in line with forecasts.
CEO Mark Read said revenues in Q4 were "impacted by weaker client discretionary spend", though growth of 2% was seen from the group's top 25 clients and he hailed an "improving new business performance" in the second half of the year with wins from Amazon, J&J, Kimberly-Clark and Unilever
Guidance for 2025 was for LFL revenue less pass-through costs of "flat to -2% with performance improving in the second half", with operating profit margins expected to be "around flat", excluding the impact of currency swings.
The fall in the shares was to the lowest level since late 2020.