Financial Data and Key Metrics Changes - Net revenue growth for 2024 was reported at minus 1%, consistent with the lower end of guidance range [7][19] - Headline operating margin improved to 15%, up 40 basis points year-on-year, despite a GBP 250 million investment in AI and data [9][21] - Operating cash flow conversion improved to 86%, benefiting from strong working capital management [14][25] - Year-end net debt decreased to GBP 1.7 billion, a reduction of GBP 0.8 billion year-on-year [14][46] Business Line Data and Key Metrics Changes - Global Integrated Agencies saw a like-for-like decline of 0.8% in 2024, while GroupM grew by 2.7% for the full year [33][34] - Global integrated creative agencies experienced a decline of 3.9% in 2024, with a more significant drop of 6.5% in Q4 [34] - Public Relations saw a like-for-like decline of 1.7% in 2024, impacted by a challenging environment for discretionary spending [36] - Specialist Agencies reported a decline of 2.3% in revenue less pass-through costs for the year [37] Market Data and Key Metrics Changes - North America experienced a decline of 0.7% in 2024, with growth in automotive and financial services offset by lower revenues in healthcare [38] - The United Kingdom declined by 2.7% in 2024, influenced by a higher weighting towards project-based work [39] - China faced a significant decline of 20.8% in 2024, reflecting macroeconomic pressures and client assignment losses [41] Company Strategy and Development Direction - The company is focused on executing its strategy to deliver long-term sustainable growth and value to shareholders [4][16] - Investment in WPP Open and AI is a key strategic pillar, with a commitment to enhance technology integration across the organization [54][58] - The company aims to improve new business performance and cash conversion while addressing challenges in client discretionary spending [10][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024, particularly in Q4, but expressed confidence in the strategic progress made [10][91] - The outlook for 2025 includes cautious guidance of flat to minus 2% like-for-like revenue, reflecting macroeconomic uncertainties [50][108] - Management expects performance to strengthen in the second half of 2025 as historical client losses begin to taper off [50][124] Other Important Information - The company plans to continue prioritizing investment in WPP Open, AI, and data, with an incremental cash spend of GBP 50 million planned for 2025 [45][50] - The company reported a flat final dividend of 24.4 pence, consistent with the previous year, representing a cash return to shareholders of over GBP 420 million [31] Q&A Session Summary Question: Why is the guidance for next year similar to 2024 despite better account wins? - Management explained that Q4 was softer than expected, and macro uncertainty has increased, impacting guidance [108][110] Question: How will flat margins be delivered with negative growth? - Management indicated that structural cost savings and efficiencies would support flat margins despite revenue challenges [114][116] Question: What is the expected average net debt to EBITDA ratio for 2025? - Management expects the average leverage to decrease towards the midpoint of the target range of 1.5% to 1.75% [107] Question: Is there a correlation between cuts in discretionary spending and CPG performance? - Management noted that the impact on CPG was driven by various factors, including variable incentives, and does not see in-housing as a significant risk [126][128]

Core Insights - U.S.-listed shares of WPP Plc fell 15% following a decline in revenue and soft guidance, particularly in North America and China [1][5] Financial Performance - WPP reported a 2.3% year-over-year decline in fourth-quarter like-for-like revenue less pass-through costs, with North America down 1.4% and the U.K. down 5.1% [2] - Revenue less pass-through costs in China dropped significantly by 21.2%, while Western Continental Europe saw a modest gain of 1.4% [2] Management Commentary - CEO Mark Read indicated that sales were affected by weaker client discretionary spending and expressed caution regarding the macro environment [3][5] - Despite the challenges, the CEO remains confident in medium-term targets, emphasizing a focus on innovation and operational excellence to support growth [3] Guidance and Market Reaction - WPP's full-year guidance for like-for-like revenue less pass-through costs is expected to be flat to down 2%, which is below the Visible Alpha estimate of a 0.35% increase [3] - The disappointing guidance has resulted in U.S.-listed shares of WPP entering negative territory for the past year [4]

Core Insights - CMI Media Group has released its first Media Vitals HCP Global research, providing insights into the media preferences of healthcare professionals (HCPs) globally [1][2] - The report emphasizes the need for brands to optimize and personalize communications with HCPs, highlighting opportunities for better support from pharmaceutical companies [2] Research Methodology - Insights were gathered from various medical doctors, including General Practitioners, Cardiologists, Pulmonologists, Hematologists, Neurologists, Oncologists, Obstetricians-Gynecologists, and Dermatologists [2] - The survey was conducted across six countries: France, Germany, Italy, Spain, United Kingdom, and Canada [2] Key Findings - Nearly half (46%) of HCPs surveyed collaborate with HCPs in other markets on a weekly basis [6] - In-person interactions remain the most common form of patient interaction, with 46% of HCPs meeting patients in person, while 71% utilize telehealth weekly [6] - A significant portion of HCPs (59%) are confident that patients have enough information to make informed decisions, indicating a role for media in patient education [6] - Over four-fifths (82%) of HCPs are likely to click on an online ad, and 83% are comfortable with personalized ads [6] Company Background - CMI Media Group is a full-service media agency focused on health, wellness, and pharmaceutical marketing, recognized for its leadership in DE&I and employee development [5] - The agency has been providing detailed guidance on pharma marketing efforts since 2013, making it a premier research tool for healthcare marketers [3]

| --- | --- | --- | --- | --- | --- | |---------------------|---------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | Q3 UPDATE | TRADING | | | | | | 23 October 2024 | | | | | | CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This document contains statements that are, or may be deemed to be, "forward-looking statements". Forwardlooking statements give the Company's current expectations or forecasts of future events. These forward-looking statements may include, among ...

Financial Data and Key Metrics Changes - The third quarter delivered a return to growth with a 0.5% increase in net sales, led by GroupM, which grew 4.8% after 1.9% growth in the first half [3][4] - Revenue less pass-through costs fell 2.6% on a reported basis but was up 0.5% on a like-for-like basis, with a 2.9 percentage point headwind from foreign exchange due to sterling strengthening [7][8] - The company reiterated guidance for like-for-like net sales of minus 1.0% to flat for the full year, with expectations for 20 to 40 basis points of margin improvement [6][13] Business Line Data and Key Metrics Changes - Global Integrated Agencies grew 0.5% in the quarter, with GroupM's media planning and buying business growing 4.8%, while integrated creative agencies declined 3.1% [8][9] - Hogarth continued to grow well, benefiting from new business wins and demand for technology and AI-driven capabilities, while VML was impacted by the loss of a healthcare creative assignment [8][9] - PR revenue grew 0.2%, with Burson declining mid-single digits due to the loss of Pfizer assignments, offset by growth at FGS Global [9] Market Data and Key Metrics Changes - North America grew 1.7%, reflecting good growth in GroupM and across the Auto and Financial Services sectors, while the U.K. net sales were stable year-on-year [10] - Western Continental Europe improved with 2.2% growth, while the Rest of the World declined by 2.2%, significantly impacted by a 21.3% decline in China [10][11] - Consumer-packaged goods grew 7.6%, while technology saw growth of 1.3%, automotive grew 5.8%, and healthcare and retail continued to decline [11] Company Strategy and Development Direction - The company is focused on building a simpler, more efficient organization through the simplification at GroupM and the adoption of WPP Open, which leverages AI and new technologies [16][20] - Significant new business wins include Amazon's media account and expanded relationships with Unilever and Starbucks, indicating a competitive edge in the market [5][18] - The strategic focus includes the sale of a stake in FGS Global to KKR, which is expected to strengthen the balance sheet and provide financial flexibility [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that while the past year has been challenging, recent new business wins and a strong pipeline position the company well for 2025 [24][25] - The macroeconomic environment remains uncertain, particularly in China, but management expects stabilization in 2025 [47] - AI is viewed as a transformative force for the company, with significant investments being made to enhance productivity and effectiveness [20][26] Other Important Information - Adjusted net debt was around GBP300 million lower than the previous year, with expectations for it to remain broadly flat at year-end [12] - The company is investing over GBP250 million in WPP Open to enhance AI capabilities across its agencies [20] Q&A Session Summary Question: What will need to happen in Q4 to reach the top end of the full year 2024 guide? - Management indicated that improvement in China, stabilization in tech, and favorable macro conditions are necessary to achieve the top end of the guidance [29] Question: Impact of recent wins on 2025 growth? - Management expects net new business to have a neutral impact on 2025, with the potential for positive contributions if recent successes are built upon [30] Question: Any new initiatives from GroupM's new CEO? - Management noted that the focus remains on the ongoing simplification and synergy projects initiated last year [34] Question: Any M&A activity in the pipeline? - Management stated that while this year has been light for M&A, they expect to return to more normalized levels next year [35] Question: Headwind from account losses in 2024? - Management confirmed that the healthcare loss was a significant drag, estimated at around 1.5% [39] Question: Tone of conversation with automotive and consumer goods companies? - Management observed that companies continue to invest in ongoing marketing, although there is caution regarding discretionary spending [40] Question: Broader impact of Media Studio on existing clients? - Management explained that Media Studio is being gradually deployed, improving media effectiveness and ROI for clients [42] Question: Incremental client losses in China? - Management reported no significant new client losses, emphasizing ongoing efforts to stabilize the business in China [49]

Group 1 - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1] - Value investing is a preferred strategy for finding strong stocks, utilizing fundamental analysis and traditional valuation metrics to identify undervalued stocks [1] - The Style Scores system can help investors find stocks with specific traits, particularly in the "Value" category for value investors [1] Group 2 - WPP currently has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential [2] - WPP's Forward P/E ratio is 8.60, which is lower than the industry's average Forward P/E of 10.06, suggesting it may be undervalued [2] - The P/B ratio for WPP is 2.25, significantly lower than the industry's average P/B of 6.05, further indicating potential undervaluation [2] - Over the past year, WPP's P/B has fluctuated between 1.75 and 2.44, with a median of 2.14, showing stability in its valuation metrics [2] - WPP's strong earnings outlook contributes to its classification as an impressive value stock at the moment [2]

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WPP plc (NYSE:WPP) Q2 2024 Earnings Conference Call August 9, 2024 11:00 AM ET Company Participants Mark Read - CEO Joanne Wilson - CFO Tom Waldron - Head, IR Conference Call Participants Laura Metayer - Morgan Stanley Adam Berlin - UBS Julien Roch - Barclays Adrien de Saint Hilaire - Bank of America Joseph Thomas - HSBC Steve Liechti - Deutsche Numis Thomas Singlehurst - Citi Operator Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the WPP 2024 Interim Results Conference Call ...

WPP plc (NYSE:WPP) Q1 2024 Results Conference Call April 25, 2024 4:30 AM ET Company Participants Mark Read - CEO Joanne Wilson - CFO Tom Waldron - Head, IR Conference Call Participants Nicolas Langlet - BNP Paribas Adam Berlin - UBS Laura Metayer - Morgan Stanley Julien Roch - Barclays Simon Baker - Bernstein Adrien de Saint Hilaire - Bank of America Richard Kramer - Arete Research Tom Singlehurst - Citi Mark Read Good morning, everybody, and welcome to WPP's 2024 First Quarter Trading Update. I'm Mark Rea ...