WPP closed 2023 with "resilient" 0.9% like-for-like growth to $US11.86 billion, as ad spend in the US tanked.
The US was 4.5% lower in the December quarter due to lower spend by technology, healthcare and retail clients, partially offset by growth in CPG, telecoms and automotive sectors.
WPP forecasts 2024 LFL revenue less pass-through costs growth of flat to 1%.
“At our recent Capital Markets Day we detailed our strategy to capture the opportunities of AI, data and technology, while harnessing the full power of our offer to clients, building world-class agency brands, and driving strong financial returns through efficient execution," says CEO Mark Read.
“AI will be fundamental for our business and we are embracing the opportunities that it presents, putting it at the heart of our operations and our work for clients. Our AI-powered platform, WPP Open, is now being used by more than 30,000 people across WPP with growing adoption by our clients.
“While 2023 was more challenging than we expected due to cuts in spending by technology clients, we delivered a resilient performance for the year with 0.9% like-for-like growth and a 0.2 point improvement in our headline operating margin at constant currency. This was driven by disciplined cost control, while continuing to invest in AI, data and technology.
“Our net new business of $4.5 billion in 2023 included major new assignments with clients such as Allianz, Krispy Kreme, Mondelēz, Nestlé, PayPal and Verizon and reflects a stronger year-on-year performance in the fourth quarter.
“We are optimistic about the strategic opportunities ahead of us and are confident that we can deliver accelerated and increasingly profitable growth over the medium term.”
WPP 2023:
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