WPP has posted its full year results, recording a 1.0% dip in like-for-like (LFL) revenue less pass-through costs, impacted in part by "weaker client discretionary spend" in the fourth quarter, during which LFL revenue less pass-through costs was down 2.3%.

The company's full-year reported revenue decreased by 0.7%, while LFL revenue increased by 2.3%. Revenue less pass-through costs was down 4.2% overall.

WPP is undergoing a strategic overhaul, focusing on a simpler client-facing structure with six agency networks representing approximately 92% of its business. The company is also increasing its investment in WPP Open, its AI, data, and technology platform, with annual investment set to rise to £300 million. This platform is described as central to new business wins.

Declines in the fourth quarter were underpinned by regional variations, with Western Continental Europe's 1.4% growth offsetting declines in North America, the UK, and the Rest of the World of 1.4%, 5.1%, and 4.8% respectively. China, in particular, experienced a significant decline of 21.2%.

The Global Integrated Agencies segment reported a 0.8% decrease in full-year LFL revenue less pass-through costs. Within this segment, GroupM recorded a 2.7% increase, which was offset by a 3.9% decline in other Global Integrated Agencies.

WPP's headline operating profit for the full year was £1,707 million, with a headline operating margin of 15.0%, marking a 0.4 point LFL improvement. The company's adjusted operating cash flow increased to £1,460 million, and adjusted free cash flow rose to £738 million, benefiting from strong working capital management. Adjusted net debt at the end of 2024 was £1.7 billion, a decrease of £0.8 billion year-on-year. A final dividend of 24.4p has been proposed, remaining unchanged from the previous year.

Chief Executive Officer Mark Read said: "We achieved significant progress against our strategy in 2024 with the creation of VML, Burson and the simplification of GroupM - some 70% of our business. We sold our stake in FGS Global to create significant value for shareholders. And we increased our margin, while stepping up our investment in AI through WPP Open, which is now used by 33,0006 people across WPP."

"The top line was lower, however, with Q4 impacted by weaker client discretionary spend. We did see growth from our top 25 clients of 2.0% and an improving new business performance in the second half of the year with wins from Amazon, J&J, Kimberly-Clark and Unilever reflecting the strength of our integrated offer."

Looking ahead, WPP has outlined strategic priorities for 2025, which include leading through AI, data, and technology, accelerating growth through creative transformation, building world-class brands, and executing efficiently to drive financial returns. The company has provided guidance for 2025, expecting LFL revenue less pass-through costs to be flat to -2%, with performance anticipated to improve in the second half. The headline operating profit margin is expected to remain around flat, excluding foreign exchange impacts.

GroupM's growth of 2.7% in 2024 was attributed to continued client investment in media, despite challenges in China. The merger of BCW and Hill & Knowlton into Burson led to the launch of additional AI-powered tools, although the segment faced a challenging environment for client discretionary spending in the fourth quarter.

Regionally, North America saw a 0.7% decline in 2024, with growth in automotive, TME, and financial services sectors offset by declines in healthcare and CPG. The UK experienced a decline due to slower client spending and a strong comparison from 2023. Western Continental Europe saw growth in France, Spain, and Italy, while Germany declined by 1.0% but showed improvement in the fourth quarter. The Rest of the World declined by 2.6%, with India growing by 2.8% and China declining by 20.8% due to macroeconomic pressures.

"The actions we are taking across WPP will strengthen our existing client relationships and drive our new business results. We expect some improvement in the performance of our integrated creative agencies in the year ahead. At the same time, we have comprehensive efforts underway to improve our competitive positioning through new leadership at GroupM, with further investment in AI, data and proprietary media," said Read.

"Though we remain cautious given the overall macro environment, we are confident in our medium-term targets and believe our focus on innovation, a simpler client-facing offer and operational excellence will support our growth and deliver greater value for our shareholders."