For the first six months of 2025, WPP’s revenue dropped to £6.66 billion, a 7.8% decrease
LONDON: WPP Plc, one of the world’s largest advertising and marketing services companies, reported a challenging first half of 2025, with declines across key financial metrics as a result of client spending pressures and a slower new business environment.
The company’s interim results, which were in line with its July trading update, also highlighted significant internal repositioning and investment in its WPP Media division and artificial intelligence capabilities.
For the first six months of 2025, WPP’s revenue dropped to £6.66 billion, a 7.8% decrease on a reported basis and a 2.4% decline on a like-for-like (LFL) basis compared to the same period last year. Revenue less pass-through costs, a key performance indicator for the company, fell 4.3% LFL to £5.03 billion.
The company’s headline operating profit was £412 million, down 29.1% LFL, resulting in a margin of 8.2%—a notable decrease from the 11.5% margin recorded in the first half of 2024. This lower margin was attributed to the decline in revenue and higher severance costs, particularly within the WPP Media division.
WPP CEO Mark Read, in his final earnings report before stepping down, acknowledged the difficult market conditions. “It has been a challenging first half given pressures on client spending and a slower new business environment,” Read said. “We have, however, made significant progress on the repositioning of WPP Media, simplifying its organizational model to increase effectiveness and reduce costs.”
Read is set to be succeeded by Cindy Rose as CEO on September 1. In light of the leadership change and ongoing financial review, the company’s board declared an interim dividend of 7.5 pence per share, a 50% reduction from the 15.0 pence per share paid in the first half of 2024. The move is intended to provide the new CEO with financial flexibility to review the company’s strategy and future capital allocation.
WPP’s performance varied by region and business segment. The Global Integrated Agencies segment saw a 4.5% LFL decline in revenue less pass-through costs, with WPP Media falling 2.9% and other creative agencies declining by 5.8%. Geographically, North America, the U.K., and Western Continental Europe all experienced LFL declines, as did China, which saw a steep 16.6% drop. India was a relative bright spot, remaining broadly flat with a 0.1% LFL growth.
Despite the headwinds, Read highlighted strategic advancements, including the acquisition of data company InfoSum and the launch of Open Intelligence. The company also reported increased adoption of its AI-powered platform, WPP Open, with approximately 85% of client-facing staff using the platform in June.
To manage costs, WPP has been proactive in restructuring its operations. Headcount was reduced by 3.7% since the start of the year, and severance actions taken in the second quarter are expected to generate more than £150 million in annual gross cost savings from 2026.
Looking ahead, WPP maintained its previous full-year outlook. The company expects a 2025 LFL revenue less pass-through costs decline of 3% to 5% and a headline operating profit margin decrease of 50 to 175 basis points year-on-year. As a result of this outlook, WPP revised its expected adjusted operating cash flow before working capital to a range of £1.1 billion to £1.2 billion, down from its initial expectation of around £1.4 billion.
Read concluded his statement by expressing confidence in the company’s future, citing its strengths in creativity, media, technology, and AI. “I would like to thank our clients for their partnership and our people for their dedication and I wish them, and Cindy, every success in the future,” he said.