WPP PLC (LSE:WPP) shares were up 5.4% in early trade after the advertising giant upgraded medium-term financial targets and announced a significant investment in artificial intelligence (AI) technology.
WPP revealed plans to invest £250 million this year in AI, a strategic move expected to revolutionise the advertising sector.
During a capital markets day in London later on Tuesday, WPP will tell investors and analysts that it has completed a restructuring and consolidation with net cost savings of £125 million by 2025.
Moreover, WPP is targeting an additional £175 million in gross savings from back office and business cost reductions.
However, it also anticipates a restructuring expense of about £125 million in 2024.
For the medium term, WPP has set a target of over 3% growth in revenue less pass-through costs, adjusting its previous goal of 3-4%. The company expects a headline operating profit margin of 16-17%, up from 15.5-16%.
At 8.41 am, the shares were changing hands for 822.9p, up 42.3p.