WPP reports nearly 8% revenue decline in H1 FY25 amid client caution, global slowdown

WPP has reported a 7.8% drop in revenue for the first half of FY25, with like-for-like (LFL) revenue down 2.4%, reflecting continued client caution and broad-based softness across geographies and verticals.

Revenue less pass-through costs for H1 stood at £5,026 million, down 10.2% on a reported basis and 4.3% LFL. The downturn deepened in Q2, where total revenue came in at £3,420 million (down 10.4%), and revenue less pass-through costs slipped 12.6% on a reported basis and 5.8% LFL.

WPP’s Global Integrated Agencies segment, which houses both media and creative businesses, posted a 4.5% LFL drop in revenue less pass-through costs in H1. WPP Media declined 2.9% in H1 (Q2: -4.7%), while other integrated creative agencies fared worse with a 5.8% dip (Q2: -7.2%).

North America, WPP’s largest market, declined 2.4% in H1 and 4.6% in Q2. The UK market shrank by 6.0% in H1 (Q2: -6.5%), while Western Continental Europe and Rest of World also posted mid-single-digit declines. India remained largely flat for the half at 0.1% LFL growth but contracted 3.9% in Q2. China continued to be a drag, with a steep 16.6% decline in H1 (Q2: -15.9%).

WPP’s top 25 clients held broadly flat at 0.1% LFL growth in the first half. While Tech & Digital Services, Automotive and Healthcare client sectors were stable across the period, the agency did see more pressure in the second quarter with LFL declines across all three. CPG, having been stable in the first quarter, also saw a LFL step down in Q2.

Headline operating profit for H1 stood at £412 million, translating to a margin of 8.2%, down 2.9 percentage points on a LFL basis from 11.5% a year ago. The company cited lower revenue less pass-through costs and elevated severance expenses particularly at WPP Mediaa’s key margin pressures.

Reported operating profit was significantly lower at £221 million, down 47.8%, including a goodwill impairment charge of £116 million.

Mark Read, Chief Executive Officer of WPP, said: “It has been a challenging first half given pressures on client spending and a slower new business environment. We have, however, made significant progress on the repositioning of WPP Media, simplifying its organisational model to increase effectiveness and reduce costs. Meanwhile, the acquisition of InfoSum, the launch oOpen Intelligence and the continued adoption of WPP Open all strengthen our data and technology capabilities.”

“The Board is declaring an interim dividend of 7.5p ahead of a review of the strategy and future capital allocation policy which will be led by Cindy Rose, who succeeds me as CEO on 1 September. The priority is to drive sustainable growth supported by an appropriate level of financial flexibility while balancing returns to shareholders,” he said. 

“WPP is a company with enormous strengths in creativity and media, technology and AI, talented people, deep client relationships and unmatched global reach. Throughout my seven years as CEO, technological innovation has been a constant and I believe that thanks to our investment in AI we can look to the future with confidence. 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 added.