Company cites client cutbacks and macro pressures; maintains full-year outlook
WPP posted a 7.8% decline in revenue for the first half of FY25, with like-for-like (LFL) revenue down 2.4%. Revenue excluding pass-through costs stood at £5.03 billion, down 4.3% LFL and 10.2% on a reported basis. In Q2, revenue less pass-through costs reached £2.54 billion, marking a 5.8% LFL drop and a 12.6% decline overall.
Operating performance took a sharper hit. The headline operating profit margin for H1 fell to 8.2%, down 2.9 percentage points LFL. Reported operating profit declined 47.8% to £221 million, impacted by a £116 million impairment charge.
Segment & Regional Breakdown
WPP Media declined 2.9% in H1 and 4.7% in Q2. Creative agencies posted a 5.8% drop in H1 and 7.2% in Q2. Regionally, North America fell 2.4% (Q2: -4.6%), the UK dropped 6% (Q2: -6.5%), and China saw a steep 16.6% fall (Q2: -15.9%). India remained flat at 0.1% for H1 but slipped 3.9% in Q2.
WPP’s top 25 clients remained flat (+0.1% LFL), though Q2 saw spending pressures in the Tech, Auto, Healthcare, and CPG sectors.
Outlook & Strategy
Despite H1 softness, WPP reaffirmed its full-year forecast: a 3–5% LFL decline in revenue less pass-through costs and a 50–175 bps hit to operating margin (excluding currency effects).
Mark Read, CEO of WPP, commented:
“It has been a challenging first half amid client spending cuts and a slower business pipeline. Still, we’ve made solid progress in repositioning WPP Media, simplifying operations and investing in data and AI through moves like the InfoSum acquisition and the rollout of Open Intelligence.
“As I prepare to step down on 1 September, the board has declared a 7.5p interim dividend. Cindy Rose, who succeeds me as CEO, will lead a review of strategy and capital allocation focused on long-term growth and flexibility.
“WPP has immense strengths-creativity, technology, talent, and reach. With continued AI investment, I’m confident about the future. I thank our clients for their trust, and our teams for their commitment, and wish Cindy every success ahead.”
