1033 GMT - WPP's top-line growth is under pressure and seems unlikely to recover without major changes as the U.K. advertising group faces persistent declines in its creative agencies, UBS analysts say in a note. "While shares have fallen by 25% [year to date] and are no longer expensive, we do not think operating performance is likely to improve without a change in strategy or asset mix," the analysts say. WPP's creative agencies--which account for 42% of the group's sales--have reported top-line declines in seven of the last eight quarters and are likely to experience further drops throughout 2025 as well, according to UBS. Moreover, these agencies could also come under pressure from competition from challenger companies like Stagwell, generative AI and cuts in ad spending, the analysts say. Shares are flat at 618.60 pence. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
March 05, 2025 05:33 ET (10:33 GMT)
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