WPP reports 1.3% organic revenue decline in H1 2025, cuts full-year outlook

WPP reported a 1.3% decline in organic revenue less pass-through costs for the first half of 2025, with weaker-than-expected performance in the United States and technology sector client losses prompting a downward revision to its full-year forecast. The group now expects full-year 2025 organic revenue less pass-through costs to be between -0.5% and 0.5%, compared with earlier guidance of 0.0% to 1.0%.

For the six months ended 30 June 2025, revenue less pass-through costs fell 3.8% on a reported basis to £5.32 billion and declined by 1.7% in constant currency. Headline operating profit dropped 15.9% year-on-year to £637 million. The headline operating margin was 12.0%, compared to 13.8% in H1 2024, reflecting a reduction of 180 basis points.

The company noted that underlying performance across its top 30 clients was stable. However, U.S. client spending remained cautious, and the group saw continued pressures in the technology sector.

Mark Read, Chief Executive Officer of WPP, said, “Our performance in the first half has been below our expectations, with a slower-than-expected start to the year in North America, where performance has been impacted by lower spending by technology clients and some project delays.”

He added, “While client spending in the US, the world’s largest ad market, has remained cautious, the underlying performance of our top 30 clients has been stable. We are taking clear actions to improve agency performance through new leadership, cost actions and investment in artificial intelligence.”

Geographically, the United Kingdom grew 1.7% organically, while Western Continental Europe contracted by 3.0%, with Germany and France both experiencing mid-single-digit declines. The U.S. saw a 4.1% decline in organic revenue, attributed mainly to client losses in the technology sector and slower decision-making cycles. Asia Pacific, Latin America, Africa and the Middle East collectively grew by 1.4%, with notable growth in India, China and Brazil.

By business line, WPP’s media investment group GroupM experienced a 4.1% organic revenue decline in H1 2025. Integrated creative agencies posted a decline of 1.6%, driven by continued client pullbacks in project-based work. Public relations operations recorded organic growth of 2.6%, supported by strong demand across corporate communications and healthcare. Specialist communications, including branding, design, and health marketing, increased by 2.4%.

The company highlighted several recent new business wins, including assignments from Nestlé, Mondelez, Shell, HSBC, The EU Parliament, Vodafone, and Paramount, as well as renewals with Ford, Beiersdorf, Comcast, and Nike.

WPP also emphasised ongoing investment in artificial intelligence, notably through the launch of WPP Open, the company’s proprietary AI platform, which aims to enhance productivity across creative, production and media processes. Over 28,000 employees have been onboarded onto the platform.

On the financial side, net debt increased to £4.1 billion as of 30 June 2025, up from £2.6 billion a year earlier. This was driven by £440 million in share buybacks, £346 million in dividend payments, and £94 million in acquisitions.

WPP stated that it anticipates stronger performance in the second half of the year, reflecting the usual seasonal weighting of activity and the benefit of new business wins. The company’s share buyback programme is expected to total £800 million for the full year.

Read said, “Our revised guidance reflects the short-term challenges we are facing. We remain confident in our ability to deliver long-term sustainable growth through our strategic investments in data, technology and AI, supported by the creativity of our talented people.”

The company declared an interim dividend of 15.0 pence per share, up from 14.4 pence in the prior year. The interim dividend will be paid on 1 November 2025 to shareholders on the register as of 7 October 2025.

WPP’s H1 2025 report reiterated its strategic focus areas, including simplifying operations, driving AI adoption, and improving the cost base through restructuring and consolidation of office space. As part of these efforts, the company has consolidated 85 locations globally and closed or exited 55 offices.

The report concluded with WPP maintaining its longer-term targets of mid-single-digit organic growth and a headline operating margin of 15.5% to 16.0% by 2025.