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Highlights:

  • WPP lowers FY25 like-for-like revenue less pass-through cost forecast to 3% to 5%
  • WPP expects H1 operating profit of GBP 400–425 million, margin to fall up to 330 bps
  • WPP shares drop 13.51% to GBX 456.30 on revised guidance and Q2 performance

WPP plc (LSE:WPP) issued a trading update ahead of its interim results, reporting weaker-than-expected Q2 performance and revising its full-year 2025 guidance. The company now expects a sharper decline in revenue and operating margin amid a difficult macroeconomic environment and lower-than-anticipated client spending.

For the first half of FY25, like-for-like (LFL) revenue less pass-through costs is expected to decline by 4.2% to 4.5%, with Q2 specifically forecasted to fall by 5.5% to 6.0%, impacted by both persistent macroeconomic pressures and one-off factors.

As a result, headline operating profit for H1 is projected between GBP 400 million and GBP 425 million, representing a margin of 8.0% to 8.5%, down 280 to 330 basis points year-on-year, excluding foreign exchange effects.

WPP had initially guided for full-year LFL revenue less pass-through costs to range between flat and -2%. The company now anticipates a steeper decline of 3% to 5%, citing continued macro uncertainty, cautious client spending, and decrease in net new business momentum. This includes some anticipated contract losses that were originally expected in FY26 but are now being recognised earlier.

The forecast for headline operating profit margin has also been lowered. WPP now expects a decline of 50 to 175 basis points year-on-year (excluding FX), compared to its prior forecast of a flat margin. 

Performance in North America, WPP’s largest market, saw a quarter-on-quarter deterioration and is now expected to decline in the low single digits for the first half. By business segment, Global Integrated Agencies, including WPP Media and Ogilvy, saw a notable step down in H1 performance, attributed to reduced client spending and limited new business wins.

The company also undertook severance actions at WPP Media, which are expected to be broadly margin-neutral for the full year but are anticipated to contribute over GBP 150 million in annualised gross cost savings going forward.

WPP confirmed it will release its interim results on 7 August 2025. 

CEO Mark Read acknowledged the challenging operating environment and weaker-than-expected June performance, stating that the pattern observed in H1 is likely to persist into the second half of the year. He reiterated the company’s approach to managing structural costs while adjusting to current trading conditions.

Following the trading update, WPP shares fell 13.51% to GBX 456.30 as of 9 July 2025,