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WPP Plc Reports H1 2025 Earnings: Revenue Down 7.8%, Operating Profit Down 47.8% Amid Strategic Repositioning and AI Investments.
ByAinvest
Saturday, Aug 9, 2025 9:33 am ET1min read
WPP Plc reported H1 2025 earnings with a 7.8% decline in revenue to £6,663 million and a 47.8% drop in operating profit to £221 million. The company is focusing on strategic repositioning, investing in AI and data technologies, and anticipates continued pressure on revenue and profit margins but remains optimistic about long-term growth prospects.
WPP Plc reported its H1 2025 earnings with a 7.8% decline in revenue to £6,663 million and a 47.8% drop in operating profit to £221 million [1]. The company is focusing on strategic repositioning, investing heavily in AI and data technologies, and anticipates continued pressure on revenue and profit margins but remains optimistic about long-term growth prospects.The company's performance was impacted by a challenging macro environment and slower new business environment, leading to a decline in organic net sales growth of 4.3% in the first half and 5.8% in the second quarter [1]. WPP Media experienced a significant decrease in operating margins due to severance costs and a challenging macro environment [1]. Despite these headwinds, WPP continues to make progress on its strategic goals, including the rapid expansion of Open Media Studio and the integration of AI-enabled technology [1].
WPP's balance sheet remains robust, with a weighted average maturity of bond debt at 6.4 years and a strong liquidity position of £3 billion [1]. The company has welcomed top talent, such as Beiu Shah from Accenture Song and Daniel Burra from RGA, to strengthen its leadership team [1]. Additionally, the company's dividend has been reset to 7.5p per share, providing financial flexibility for sustainable growth [2].
Looking ahead, WPP anticipates a continued decline in LFL revenue less pass-through costs of -3% to -5% with headline operating profit margin down 50 to 175 bps (excluding the impact of FX) [2]. The company's strategic priorities for 2025 include improving the competitiveness of WPP Media, further adoption of WPP Open, and cost discipline enabling investment in AI and data technologies [2].
References:
[1] https://finance.yahoo.com/news/wpp-plc-wpp-h1-2025-170125472.html
[2] https://www.wpp.com/en-us/news/2025/08/2025-interim-results
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