WPP revises targets after Q2 revenue falls up to 6%: Report

WPP has revised its full-year 2025 guidance after reporting weaker-than-expected results for the second quarter. The advertising holding company cited continued macroeconomic pressures, reduced client spending, and lower-than-anticipated net new business activity as the primary factors.

According to the company’s trading update, first-half like-for-like (LFL) revenue less pass-through costs is expected to decline by 4.2% to 4.5%, with Q2 alone seeing a sharper drop of 5.5% to 6.0%. WPP noted that the June performance, in particular, was below expectations.

“We expected the second quarter to be similar to the first quarter,” said Mark Read, Chief Executive Officer, WPP. “Performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.”

Headline operating profit for the first half is forecast between £400 million and £425 million, implying a 280 to 330 basis point year-on-year decline in margin (excluding currency effects). The drop is attributed to lower revenues and severance-related costs within WPP Media.

The company has revised its full-year outlook, now expecting LFL revenue less pass-through costs to decline by 3% to 5%, compared to earlier guidance of flat to -2%. It also forecasts a 50 to 175 basis point decline in headline operating profit margin year-on-year, versus its previous estimate of a flat margin.

Read noted, “We are updating our guidance for the full year and reducing our expectations on LFL revenue less pass-through costs growth… with a year-on-year decline in headline operating profit margin of 50 to 175 bps.”

He added, “Our focus remains on ensuring the right balance between investing in the business for the long-term and continuing to reduce structural costs, while taking appropriate actions to respond to the current trading environment.”

Regional and segment trends

The update highlighted a quarter-on-quarter deterioration in North America, which is projected to be down in the low single digits for H1. Other global markets also remained subdued, despite an easing of year-ago comparables.

Among business segments, Global Integrated Agencies, which include networks like Ogilvy and WPP Media, are expected to report a mid-single-digit decline for the half-year, impacted by reduced client spend and slower new business momentum.

Cost actions and interim results

Severance actions taken at WPP Media in Q2 are expected to be cost-neutral for the full year, with the company projecting over £150 million in annualised gross cost savings. These measures are intended to mitigate ongoing macro pressures and help support margins in the second half of the year.