Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • WPP reports H1 revenue of GBP 6.66bn, down 7.8% YoY; LFL revenue down 2.4%
  • WPP headline operating margin falls 2.9 pts to 8.2% amid severance and revenue dip
  • WPP announces interim dividend of 7.5p; strategy review expected under new CEO

WPP Plc (LSE: WPP), one of the world’s largest advertising and communications groups, reported its interim results for the first half of 2025, showing declines across key financial metrics in line with its July trading update. The group cited weak client spending and macroeconomic pressures as contributing factors to the performance.

Reported revenue for H1 2025 stood at GBP 6.66 billion, down 7.8% from the same period last year. On a like-for-like (LFL) basis, revenue fell by 2.4%. Revenue less pass-through costs a closely watched measure came in at GBP 5.03 billion, representing a 4.3% LFL decline and a 10.2% drop on a reported basis. Second quarter figures showed further deceleration, with Q2 revenue of GBP 3.42 billion down 10.4% reported and 4.0% LFL. Q2 revenue less pass-through costs fell by 5.8% LFL and 12.6% reported.

WPP’s headline operating profit for the first half was GBP 412 million, reflecting an 8.2% margin, down 2.9 percentage points on a LFL basis compared to H1 2024. Reported operating profit stood at GBP 221 million, down 47.8% year-on-year, affected by a GBP 116 million goodwill impairment charge and higher severance costs especially within the WPP Media division. Adjusted net debt averaged GBP 3.4 billion at the end of June 2025, down GBP 200 million from the prior year, partly due to proceeds from the FGS Global stake sale.

Among business units, Global Integrated Agencies saw a 4.5% LFL decline in revenue less pass-through costs, with WPP Media down 2.9% and other creative agencies down 5.8%. North America posted a 2.4% LFL decline, while Western Continental Europe and the UK recorded drops of 5.5% and 6.0%, respectively. India was flat (0.1%), while China declined significantly by 16.6%. Client sector performance showed mixed trends. While the top 25 clients remained flat at 0.1% LFL growth, Technology, Automotive, and Healthcare sectors saw pressure in Q2. Consumer Packaged Goods (CPG) also declined after initial stability in Q1.

The group focused on repositioning WPP Media and enhancing its data and AI infrastructure. This includes launching the Open Intelligence platform, acquiring InfoSum, and expanding adoption of the WPP Open platform now used by 85% of client-facing staff. To manage costs, headcount fell 3.7% during H1. Severance actions are projected to deliver over GBP150 million in gross annual cost savings from 2026.

The board declared an interim dividend of 7.5p per share down from 15.0p last year citing the need to retain financial flexibility ahead of a broader strategic review to be led by incoming CEO Cindy Rose, effective from September 1, 2025. WPP reaffirmed its guidance for full-year 2025, expecting a LFL revenue decline of 3% to 5%, and a headline operating margin down 50 to 175 basis points compared to 2024. Adjusted operating cash flow before working capital is now forecast between GBP 1.1 billion and GBP1.2 billion, revised from an earlier target of around GBP 1.4 billion.

WPP is trading 4.30% lower at GBX 384.80  per share as of 7 August 2025.