WPP reported broadly in line Q1 2023 revenues WPP reported net revenues organic growth at +2.9%, a touch above consensus at +2.4%. The performance was driven by the UK at +7.4%, Continental Europe at +3.4%, but more modest growth in North America (+1.9%) and the Rest of the World. We note that China came in at -13% and is expected to recover from Q2 2023 onwards. Excluding China, organic growth was +3.6%. GroupM (c36% of Group net sales) grew +6.1%, suggesting that Global Integrated Agencies excluding GroupM grew +0.7% (impacted by a slower start to the year at Wunderman Thompson, primarily due to lower spend from some technology clients). WPP reiterated FY23 guidance WPP reaffirmed FY23 guidance with organic growth between 3%-5% and headline operating margins at c15% (excluding FX). The reiterated organic growth guidance implies the company does not anticipate a deceleration throughout the year but rather an improvement. On the call, CFO John Rogers expects H2 23 to be a bit stronger than H1 23, with margins also being skewed towards H2. Elsewhere, WPP announced KKR took 29% of FGS Global (PR) Following press articles on the matter in recent weeks, WPP announced/confirmed KKR is to take a minority stake (29%) in FGS Global (strategic communication company that offers services including Corporate Reputation, Crisis Management, Government Affairs related missions and Financial Communications) at a USD1.425m valuation. Forecast changes We do not change our operating expectations for the company although we update our FX, which leads to 1% EPS decline in our model versus our previous estimates. We rate WPP Outperform In the context of a bullish stance on the ad agencies, we see the most upside risk at WPP (see our recent upgrade here) - which is not reflected in current valuation at 7x EV/EBIT 24e.