WPP Share Price (WPP)

(Alliance News) - "WPP PLC late Tuesday announced a partnership deal with Alphabet Inc that will see Google’s Gemini models integrated with WPP Open, its artificial intelligence powered marketing operating system.

Shares in WPP rose 2.8% to 771.92 pence each in London on Wednesday morning. The wider FTSE 100 was up 0.6%.

WPP, the London-based advertising firm, called the partnership "groundbreaking," explaining the pact will combine Google's expertise in data analytics, generative AI technology and cyber security with WPP's end-to-end marketing capabilities."

I'd call that a good news day.

The charts for this are horrific, it had a triple top at a tenner then caved in, this is going back to covid lows, expect to see just sub a fiver, world recession plus it’s listed on the dog index of the world uk ftse doesn’t help.

Share price has dropped by the value of the forthcoming dividend ( ex div 06th June)

Outlook doesn't sound too exciting with just 1% like for like growth and £285m cash restructuring and £260m capex ( as noted previously)

Our guidance for 2024 is as follows:

Like-for-like revenue less pass-through costs growth of 01%.

Headline operating margin improvement of 20-40bps (excluding the impact of FX)

Other 2024 financial indications:

? Mergers and acquisitions will add 0.5-1.0% to revenue less pass-through costs growth

? FX impact: current rates (at 15 February 2024) imply a c.2% drag on FY 2024 revenues less pass-through costs, with no meaningful impact expected on FY 2024 headline operating margin

? Headline income from associates and non-controlling interests at similar levels to 2023

? Net finance costs of around £295m

? Effective tax rate (measured as headline tax as a % of headline profit before tax) of around 28%

? Capex of around £260m

? Cash restructuring costs of around £285m

? Working capital expected to be broadly flat year-on-year

The company seems to be navigating the current tough economy well