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WPP PLC announced its H1 2025 Interim Results on 07 August 2025, reporting revenue of £6,663m (down 7.8% reported) and revenue less pass-through costs of £5,026m (down 10.2% reported). The Board declared an interim dividend of 7.5p per share, representing a 50.0% decrease from H1 2024, and stated that Cindy Rose will succeed Mark Read as Chief Executive Officer on 1 September.
| Date | 7 Aug 2025 |
| Time | 07:00:12 |
| Category | Results |
| ID | 3187U |
7 August 2025
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H1 performance in line with July 2025 trading update; significant repositioning and investment in WPP Media; strengthening of data and AI capabilities |
|
Key figures (£ million) |
H1 2025 |
+/(-) % reported1 |
+/(-) % LFL2 |
H1 2024 |
|
Revenue |
6,663 |
(7.8) |
(2.4) |
7,227 |
|
Revenue less pass-through costs |
5,026 |
(10.2) |
(4.3) |
5,599 |
|
Reported: |
|
|
|
|
|
Operating profit |
221 |
(47.8) |
|
423 |
|
Operating profit margin (%)3 |
3.3 |
(2.6)pt |
|
5.9 |
|
Diluted EPS (p) |
4.0 |
(78.7) |
|
18.8 |
|
Dividends per share (p) |
7.5 |
(50.0) |
|
15.0 |
|
Headline4: |
|
|
|
|
|
Operating profit |
412 |
(36.2) |
(29.1) |
646 |
|
Operating profit margin (%) |
8.2 |
(3.3)pt |
(2.9)pt |
11.5 |
|
Diluted EPS (p) |
20.0 |
(35.3) |
|
30.9 |
In line with the July trading update, WPP reports H1 revenue of £6,663m, down 7.8% on a reported basis and down 2.4% like-for-like (LFL), while revenue less pass-through costs of £5,026m was down 4.3% LFL. Q2 revenue less pass-through costs of £2,544m was down 12.6% on a reported basis and 5.8% LFL. H1 reported operating profit margin was 3.3% and headline operating profit margin was 8.2%, representing a LFL decrease of 2.9pt. With H1 results in line with our trading update issued in early July, we continue to expect 2025 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).
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 of Open 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.
"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."
WPP's 2025 Interim Results announcement has been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and will be available shortly for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The Report is also available at http://www.rns-pdf.londonstockexchange.com/rns/3187U_1-2025-8-6.pdf and on the WPP investor relations website www.wpp.com/investors.
• Revenue - H1 reported revenue of £6,663m was down 7.8%, with a LFL decline of 2.4%. H1 revenue less pass-through costs of £5,026m was down 10.2% reported and down 4.3% LFL. Q2 revenue of £3,420m was down 10.4%, a LFL decline of 4.0%. Q2 revenue less pass-through costs of £2,544m was down 12.6% reported and down 5.8% LFL.
• Business segment and regions - Global Integrated Agencies H1 LFL revenue less pass-through costs fell 4.5% (Q2: -6.0%) with WPP Media declining 2.9% (Q2: -4.7%) and other integrated creative agencies declining 5.8% (Q2: -7.2%). By geography, North America declined 2.4% (Q2: -4.6%), UK -6.0% (Q2: -6.5%), Western Continental Europe -5.5% (Q2: -6.5%) and Rest of World -5.4% (Q2: -6.8%), with India broadly flat 0.1% (Q2: -3.9%) offset by a decline in China of -16.6% (Q2: -15.9%).
• Clients - 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, we 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.
• Operating profit - H1 headline operating profit was £412m, a margin of 8.2% (H1 2024: 11.5%), down 2.9pt LFL. The lower margin reflects the decline in revenue less pass-through costs and higher severance costs, in particular at WPP Media. H1 reported operating profit was £221m down 47.8%, including goodwill impairment of £116m.
• Average adjusted net debt as at 30 June 2025 of £3.4bn down £0.2bn from 30 June 2024, reflecting net sale proceeds received in December 2024 from FGS Global which were used to pay down debt.
• Dividend - The Board has decided to set the interim dividend at 7.5p (H1 2024: 15.0p). The Board recognises the importance of dividends to shareholders and today's step balances that, creating room for our incoming CEO to review the group's strategy and capital allocation policy while maintaining financial flexibility.
Delivering on strategic priorities for 2025
• Improving the competitiveness of WPP Media - WPP Media's performance during the course of the first half reflects the continued impact of client losses and a challenging macro environment. During the second quarter, however, we have seen significant progress on the implementation of the plan laid out by Brian Lesser at the preliminary results announcement in February. Operationally, with the launch of Open Intelligence and supported by the acquisition of InfoSum, WPP Media is well advanced on its plan to create the next generation of AI-enhanced data and marketing solutions for clients, delivered through the industry's most powerful and secure infrastructure. In addition, action taken in the second quarter to make WPP Media's organisational model more client-centric gives greater flexibility for reinvestment and allows us to focus our resources on continuing to improve our competitive proposition and on our client success.
• Further adoption of WPP Open - AI, data and technology are central to the way we serve our clients and continues to drive increased scope of work with existing clients. It is also supporting our new business activity. Usage of WPP Open continues to grow, with c.85% of our client-facing staff using the platform in June (up from c.60% in March).
• New business - Amid lower levels of activity at a market level, H1 wins include Electronic Arts, Hisense and Hero Motocorp in Media, L'Oréal and Samsung in Influencer, TK Maxx and Honda in PR and Generali, IKEA and Heineken in Creative/Commerce.
• Cost discipline enabling investment in WPP Open, AI and data - In addition to the annualisation of structural cost savings and a continued focus on back-office efficiency, we are also taking a proactive approach to managing our flexible cost base. Headcount since the start of the year was down 3.7%, broadly in line with the LFL revenue decline and we expect the severance action taken in the second quarter alone to generate £150m+ of annualised gross cost savings from 2026. We continue to prioritise investment in WPP Open, AI and data including the integration of new AI tools into WPP Open, driving day-to-day productivity improvements for our people.
Financial outlook for 2025
• LFL revenue less pass-through costs - In line with our trading update issued in early July, we continue to expect 2025 LFL revenue less pass-through costs of -3% to -5%.
• Headline operating profit margin - Again, in line with commentary in early July, we continue to expect headline operating profit margin to be down 50 to 175 bps year on year (excluding the impact of FX). This incorporates the benefit of cost action taken in the first half which will support an improved margin in the second half, while we continue to prioritise appropriate investment in the business.
• Adjusted operating cash flow before working capital - As a result of our LFL revenue less pass-through cost and headline operating profit margin guidance, we now expect adjusted operating cash flow before working capital for 2025 to be in the range of £1.1bn to £1.2bn relative to our original expectation of around £1.4bn.
• Other financial indicators - Further detail on 2025 guidance is provided on page 10.
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For further information:
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Media |
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Investors and analysts |
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Chris Wade, WPP |
+44 20 7282 4600 |
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Thomas Singlehurst, CFA |
+44 7876 431922 |
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Richard Oldworth, |
+44 7710 130 634 |
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Anthony Hamilton |
+44 7464 532903 |
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Burson Buchanan |
+44 20 7466 5000 |
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Melissa Fung |
+44 7353 107064 |
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press@wpp.com |
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irteam@wpp.com |
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1. Percentage change in reported sterling.
2. Like-for-like. LFL comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include the results of acquisitions and disposals for the commensurate period in the prior year.
3. Reported operating profit divided by revenue.
4. In this press release, not all of the figures and ratios used are readily available from the unaudited interim results included in Appendix 4. Management believes these non-GAAP measures, including like-for-like, revenue less pass-through costs and headline profit measures, are both useful and necessary to better understand the Group's results. Details of how these have been arrived at are shown in Appendix 4.
First half 2025 overview
Revenue in the first half was £6,663m, down 7.8% from £7,227m in H1 2024, and down 2.4% LFL. Revenue less pass-through costs was £5,026m, down 10.2% from £5,599m in H1 2024, and down 4.3% LFL.
|
£ million |
Q2 2025 |
% reported |
% M&A |
% FX |
+/(-) % LFL |
|
Revenue |
3,420 |
(10.4) |
(2.8) |
(3.6) |
(4.0) |
|
Revenue less pass-through costs |
2,544 |
(12.6) |
(3.3) |
(3.5) |
(5.8) |
|
£ million |
H1 2025 |
% reported |
% M&A |
% FX |
+/(-) % LFL |
|
Revenue |
6,663 |
(7.8) |
(3.0) |
(2.4) |
(2.4) |
|
Revenue less pass-through costs |
5,026 |
(10.2) |
(3.5) |
(2.4) |
(4.3) |
Segmental review
Business segments - revenue less pass-through costs
|
+/(-) % LFL |
Global Integrated Agencies |
Public Relations |
Specialist Agencies |
|
Q2 2025 |
(6.0) |
(7.8) |
(1.9) |
|
H1 2025 |
(4.5) |
(7.2) |
(0.4) |
Global Integrated Agencies: WPP Media saw a LFL decline in revenue less pass-through costs of 2.9% in H1 (Q2: -4.7%) impacted by cuts in client spending as well as the impact of one-off factors in Q2. Cuts to client spending and lower net new business, including the ramping down of a Q1 client loss, particularly weighed on Q2 LFL.
Other Global Integrated Agencies declined 5.8% (Q2: -7.2%) as a result of lower overall client spending, particularly at Ogilvy which declined high-single digits in the first half. There was also continuing pressure on project-based work which weighed on our agencies, albeit both AKQA and Grey saw a slight sequential quarterly improvement on easier comparisons. VML and Hogarth performed relatively better in the first half (down low-single digits and broadly flat, respectively), benefiting from recent new business wins.
Public Relations: In Q2, Burson saw a broadly similar trend to Q1 with LFL revenue less pass-through costs down mid-to-high-single digit as the business continued to face a challenging environment for client discretionary spending, in particular in Europe. We are however encouraged by improved new business momentum in H1, in particular in the US.
Specialist Agencies: Overall, Specialist Agencies was broadly flat, with H1 LFL revenue less pass-through costs declining 0.4%, with a Q2 decline of 1.9%. Landor, and a number of our smaller specialist agencies, continued to be affected by the macro environment and further delays in project-based spending, particularly in Q2. However, CMI Media Group, our specialist healthcare media planning and buying agency, continued to grow strongly in H1, building on double-digit growth in 2024. Encouragingly, Design Bridge and Partners returned to growth in Q2.
Regional segments - revenue less pass-through costs
|
+/(-) % LFL |
North America |
United Kingdom |
Western Cont. Europe |
Rest of World |
|
Q2 2025 |
(4.6) |
(6.5) |
(6.5) |
(6.8) |
|
H1 2025 |
(2.4) |
(6.0) |
(5.5) |
(5.4) |
North America declined by 2.4% in H1 2025, driven by a Q2 decline of 4.6% reflecting a quarter-on-quarter deterioration against a tougher Q2 comparison (Q2 2024: +2.0%) and the ramp down of a Q1 client loss. This was partially offset by a resumption of growth in Healthcare and a robust performance in Government. VML saw broadly flat H1 growth, while Ogilvy and AKQA suffered cuts in client spend.
The United Kingdom declined 6.0% in H1, with Q2 seeing a 6.5% decline despite an easing comparison (Q2 2024: -5.3%). Ogilvy grew in H1 benefiting from new business, offset by declines in other agencies. The UK saw pressure in Telecom, Media & Entertainment, reflecting client losses.
Western Continental Europe also remained weak against an easier comparison, down 5.5% in H1 and 6.5% in Q2. France and Italy saw mid-to-high-single digit declines, reflecting the continuing impact of macroeconomic pressures weighing on client spending and the impact of one-off factors. Germany declined 3.2% in H1, however with a sequential improvement in trend (Q2: -1.6%).
Rest of World declined 5.4% in H1. India remained flat (+0.1%) against a tough comparison (H1 2024: +8.1%), impacted by the timing of sporting events, but this was offset by a decline of 16.6% in China on client assignment losses and persistent macroeconomic pressures. There were also declines in Latin America (-2.7%) and Middle East & Africa (-2.6%). Central & Eastern Europe, meanwhile, continued to grow (+2.2%).
Top five markets - revenue less pass-through costs
|
+/(-) % LFL |
USA |
UK |
Germany |
China |
India |
|
Q2 2025 |
(4.5) |
(6.5) |
(1.6) |
(15.9) |
(3.9) |
|
H1 2025 |
(2.3) |
(6.0) |
(3.2) |
(16.6) |
0.1 |
Client sector - revenue less pass-through costs
|
|
Q2 2025 |
H1 2025 |
H1 2025 |
|
|
+/(-) % LFL |
+/(-) % LFL |
% share, revenue less pass-through costs1 |
|
CPG |
(8.3) |
(4.2) |
27.8 |
|
Tech & Digital Services |
(1.2) |
1.5 |
17.8 |
|
Healthcare & Pharma |
(0.5) |
(0.2) |
11.7 |
|
Automotive |
(4.5) |
0.1 |
10.7 |
|
Retail |
(3.9) |
(3.5) |
8.9 |
|
Telecom, Media & Entertainment |
(7.4) |
(6.2) |
6.5 |
|
Financial Services |
(4.5) |
(1.1) |
6.2 |
|
Other |
(14.6) |
(14.2) |
4.1 |
|
Travel & Leisure |
(5.3) |
(5.3) |
3.6 |
|
Government, Public Sector & Non-profit |
8.6 |
10.7 |
2.7 |
1. Proportion of WPP revenue less pass-through costs in H1 2025; table made up of clients representing 82% of WPP total revenue less pass-through costs.
Financial results
Unaudited income statement1:
|
|
Headline |
Reported |
||||
|
£ million |
H1 2025 |
H1 2024 |
+/(-) % |
H1 2025 |
H1 2024 |
+/(-) % |
|
Revenue |
6,663 |
7,227 |
(7.8) |
6,663 |
7,227 |
(7.8) |
|
Revenue less pass-through costs |
5,026 |
5,599 |
(10.2) |
5,026 |
5,599 |
(10.2) |
|
Operating profit |
412 |
646 |
(36.2) |
221 |
423 |
(47.8) |
|
Operating profit margin (%)2 |
8.2% |
11.5 % |
(3.3)pt |
3.3% |
5.9% |
(2.6)pt |
|
Earnings from associates |
17 |
15 |
13.3 |
17 |
16 |
6.3 |
|
Profit before interest & tax |
429 |
661 |
(35.1) |
238 |
439 |
(45.8) |
|
Net finance costs |
(129) |
(136) |
5.1 |
(140) |
(101) |
38.6 |
|
Profit before taxation |
300 |
525 |
(42.9) |
98 |
338 |
(71.0) |
|
Tax |
(55) |
(146) |
62.3 |
(28) |
(92) |
(69.6) |
|
Profit after taxation |
245 |
379 |
(35.4) |
70 |
246 |
(71.5) |
|
Non-controlling interests |
(26) |
(41) |
36.6 |
(26) |
(41) |
(36.6) |
|
Profit attributable to shareholders |
219 |
338 |
(35.2) |
44 |
205 |
(78.5) |
|
Diluted EPS (p) |
20.0p |
30.9p |
(35.3) |
4.0p |
18.8p |
(78.7) |
1. Non-GAAP measures in this table are reconciled in Appendix 4.
2. Headline operating profit margin is headline operating profit divided by revenue less pass-through costs and reported operating profit margin is reported operating profit divided by revenue, with the % change expressed in margin points.
Operating profit
Headline operating profit was £412m (H1 2024: £646m), at a headline operating profit margin of 8.2% (H1 2024: 11.5%), 3.3 points lower than the prior period, and 2.9 points lower LFL. This reflects the decline in revenue less pass-through costs (LFL decline of 4.3%) and increased severance activity compared to the prior period, in particular at WPP Media.
Total headline operating costs were down 6.8%, to £4,614m (H1 2024: £4,953m).
Staff costs of £3,685m were down 7.5% compared to the prior period (H1 2024: £3,985m), representing lower headcount as a result of the actions we have taken to mitigate the top-line decline in H1, lower incentives and our restructuring initiatives, which has more than offset wage inflation and severance costs in the period, which were £86m (H1 2024: £36m).
Incentives of £59m were down 60.1% compared to the prior period (H1 2024: £148m) due to business performance against annual incentive targets and the disposal of FGS Global.
The average number of people in the Group in the first half was 106,000 compared to 113,000 in H1 2024. The total number of people as at 30 June 2025 was 104,000 compared to 111,000 as at 30 June 2024.
Establishment costs of £219m were down 9.5% compared to the prior period (H1 2024: £242m) driven by the ongoing benefits from the campus programme and consolidation of leases, the benefit from the prior year FGS disposal in H2 2024 and a favourable FX impact. IT costs of £340m were broadly flat supported by our continuing investment in WPP Open, AI and data. Personal costs of £98m were down 4.9% driven by savings in travel and entertainment, and other operating expenses of £272m were down 3.5% driven by lower commercial and office costs.
Reported operating profit was £221m (H1 2024: £423m) at a reported operating profit margin of 3.3% (H1 2024: 5.9%) with the decrease primarily due to the same factors as headline operating profit above, with total adjusting items of £191m (H1 2024: £223m). Reported operating profit includes goodwill impairment charges of £116m (H1 2024: £nil), amortisation and impairment of acquired intangible assets of £32m (H1 2024: £57m) and restructuring costs of £45m (H1 2024: £153m). The prior period included £23m of impairment of investments in associates.
The restructuring costs represent a decrease of £108m from the prior period, consistent with the expected ramp down shared at the 2024 Capital Markets day.
Net finance costs
Headline net finance costs of £129m were down 5.1% compared to the prior period (H1 2024: £136m), primarily due to a lower average adjusted net debt in H1 2025 compared to H1 2024.
Reported net finance costs were £140m (H1 2024: £101m), including net expense of £11m (H1 2024: net income £35m) relating to the revaluation and retranslation of financial instruments.
Tax
The headline effective tax rate (based on headline profit before tax) was 18.3% (H1 2024: 28.0%).
The headline tax charge in the first half is lower than the prior corresponding period primarily due to the benefit of credits from the successful resolution of a tax matter.
For the full year, we expect fixed elements within our tax charge to have a proportionately higher effect on a lower profit before tax, therefore our expectation is now for the full year headline effective tax rate to be around 31%.
The reported effective tax rate was 28.6% (H1 2024: 27.2%). The reported effective tax rate is higher than the headline effective tax rate primarily due to non-deductible goodwill impairment charges.
Given the Group's geographic mix of profits and the changing international tax environment, the tax rate is expected to increase over the next few years.
Earnings per share ("EPS") and dividend
Headline diluted EPS was 20.0p (H1 2024: 30.9p), a decrease of 35.3% due to lower headline operating profit offset by lower headline net finance costs and a lower headline effective tax rate.
Reported diluted EPS was 4.0p (H1 2024: 18.8p), a decrease of 78.7% due to lower reported operating profit, higher net finance costs and a higher reported effective tax rate.
For 2025, the Board is declaring an interim dividend of 7.5p (H1 2024: 15.0p). The record date for the interim dividend is 10 October 2025, and the dividend will be payable on 3 November 2025.
Cash flow highlights
Unaudited headline cash flow statement1:
|
Six months ended (£ million) |
30 June 2025 |
30 June 2024 |
|
Headline operating profit |
412 |
646 |
|
Headline earnings from associates |
17 |
15 |
|
Depreciation of property, plant and equipment |
82 |
81 |
|
Amortisation of other intangibles |
20 |
14 |
|
Depreciation of right-of-use assets |
101 |
110 |
|
Headline EBITDA |
632 |
866 |
|
Less: headline earnings from associates |
(17) |
(15) |
|
Repayment of lease liabilities and related interest |
(170) |
(187) |
|
Non-cash compensation |
41 |
56 |
|
Non-headline cash items (including restructuring costs) |
(35) |
(144) |
|
Capex |
(88) |
(107) |
|
Adjusted operating cash flow before working capital |
363 |
469 |
|
Working capital |
(1,348) |
(1,056) |
|
Adjusted operating cash flow |
(985) |
(587) |
|
% conversion of Headline operating profit |
(239)% |
(91)% |
|
Net dividends (to minorities)/from associates |
(11) |
(16) |
|
Contingent consideration liability payments |
(15) |
(25) |
|
Net interest |
(93) |
(49) |
|
Cash tax2 |
(168) |
(168) |
|
Adjusted free cash flow |
(1,272) |
(845) |
|
Disposal proceeds |
6 |
33 |
|
Net initial acquisition payments |
(133) |
(29) |
|
Dividends |
- |
- |
|
Share purchases |
(92) |
(57) |
|
Adjusted net cash flow |
(1,491) |
(898) |
|
Reported: |
|
|
|
Net cash outflow from operating activities |
(1,036) |
(540) |
1. A summary of the Group's unaudited cash flow statement and notes for the six months ended 30 June 2025 is provided in Appendix 1 and any non-GAAP measures in this table are reconciled in Appendix 4.
2. Cash tax in H1 2025 includes £43m related to tax payments for the FGS disposal.
Adjusted operating cash outflow was £985m (H1 2024: £587m). The main drivers of the larger cash outflow year on year was the decrease in headline operating profit and a larger working capital outflow, £292m higher than the prior period, which was partially offset by a decrease in non-headline cash costs to £35m (H1 2024: £144m). Working capital was a net outflow of £1,348m (H1 2024: £1,056m) and reflects the usual seasonality of client activity and timing of payments. Non-headline cash items includes £40m of cash restructuring and transformation costs offset by £5m of investment income received. The decrease from the prior period is driven by the ramp down of the previously announced structural cost saving programs and lower spend on our IT transformation.
Adjusted free cash outflow was £1,272m, higher than prior period (H1 2024: £845m) due to the higher adjusted operating cash outflow and higher net interest payments. Adjusted net cash outflow of £1,491m was higher than the prior period (H1 2024: £898m) due to higher net initial acquisition payments, mainly for the InfoSum acquisition, and higher share purchases compared to the prior period.
Reported net cash outflow from operating activities (see Appendix 1) increased to £1,036m (H1 2024: £540m outflow) due to the decrease in reported operating profit and a larger working capital outflow.
Balance sheet highlights
Unaudited balance sheet
As at 30 June 2025, the Group had total equity of £3,408m (31 December 2024: £3,734m).
Non-current assets of £11,543m decreased by £305m (31 December 2024: £11,848m), primarily driven by lower goodwill due to impairment charges recognised in H1 2025.
Current assets of £11,851m decreased by £1,810m (31 December 2024: £13,661m). The decrease principally relates to a decrease in cash and cash equivalents of £1,201m and trade and other receivables which decreased by £356m to £7,366m.
Current liabilities of £13,760m decreased by £1,756m (31 December 2024: £15,516m). The decrease principally relates to trade and other payables which decreased by £1,989m, partially offset by a net increase in current borrowings of £352m. The increase in current borrowings is due to an increase of short-term financing offset by the repayment of €500m of 1.375% bonds which matured March 2025.
The decrease in both trade and other receivables and trade and other payables is primarily due to the seasonality of client activity and timing of payments, with the movement from December consistent with prior years.
Non-current liabilities of £6,226m (31 December 2024: £6,259m) remained broadly flat.
Recognised within total equity, other comprehensive loss of £304m (H1 2024: £62m loss) for the period includes a £359m loss (H1 2024: £37m loss) for foreign exchange differences on translation of foreign operations, and an £88m gain (H1 2024: £18m loss) on the Group's net investment hedges.
A summary of the Group's unaudited balance sheet and selected notes as at 30 June 2025 is provided in Appendix 1.
Adjusted net debt
As at 30 June 2025, the Group had cash and cash equivalents of £1.4bn (31 December 2024: £2.6bn) and borrowings of £4.8bn (31 December 2024: £4.3bn). The Group has current liquidity of £3.0bn (31 December 2024: £4.5bn) comprising of cash and cash equivalents, bank overdrafts and undrawn credit facilities.
As at 30 June 2025, adjusted net debt was £3.3bn (31 December 2024: £1.7bn), up £1.6bn since the beginning of the year, reflecting seasonal cash outflows in the first half of the year. Average adjusted net debt at 30 June 2025 was £3.4bn, compared to £3.5bn at 31 December 2024 and £3.6bn at 30 June 2024.
The average adjusted net debt to headline EBITDA ratio in the 12 months ended 30 June 2025 is 1.98x (12 months ended 30 June 2024: 1.85x), which is outside our target range of 1.5x-1.75x.
The Group has a five-year Revolving Credit Facility of $2.5bn maturing in February 2030, with a further one-year extension option and with no financial covenants.
As at 30 June 2025, our bond portfolio had an average maturity of 6.4 years (31 December 2024: 6.3 years) and a weighted average coupon rate of 3.5% (31 December 2024: 3.5%).
Financial outlook
Our guidance for 2025 is as follows:
|
Like-for-like revenue less pass-through costs growth of -3% to -5% Headline operating margin expected to decline 50 to 175 bps year-on-year (excluding the impact of FX) |
Other 2025 modelling assumptions:
• Mergers and acquisitions will reduce revenue less pass-through costs by around 3.0 points primarily due to the disposal of FGS Global, partially offset by anticipated M&A
• FX impact: current rates (at 1 August 2025, with USD/GBP rate of 1.33) imply a c.1.7% drag on FY 2025 revenue less pass-through costs, with c.10bps reduction expected on FY 2025 headline operating margin
• In keeping with our revenue less pass-through cost and headline operating margin guidance, we now expect the following:
• Headline earnings from associates of around £40m (unchanged)
• Non-controlling interests of around £65m (unchanged)
• Headline net finance costs of around £280m (unchanged)
• Headline effective tax rate1 of around 31% vs. 29% previously
• Capex of around £220m vs. £250m previously
• Cash restructuring costs of around £90m vs. £110m previously
• Adjusted operating cash flow before working capital of around £1.1bn to £1.2bn vs. £1.4bn previously
Medium-term targets
In January 2024, we presented our updated medium-term financial framework including the following three targets:
• 3%+ LFL growth in revenue less pass-through costs
• 16-17% headline operating profit margin
• Adjusted operating cash flow conversion of 85%+2
This announcement contains information that qualifies or may qualify as inside information. The person responsible for arranging the release of this announcement on behalf of WPP plc is Balbir Kelly-Bisla, Company Secretary.
1. Headline tax as a % of headline profit before tax.
2. Adjusted operating cash flow divided by headline operating profit.
Q2 2025 highlights
At our January 2024 Capital Markets Day we set out four strategic pillars. Below we highlight key developments from Q2 against these areas of strategic focus.
1. Lead through AI, data and technology
• Driving investment and adoption of WPP Open - At the preliminary results in February 2025 we outlined our ambition to drive further investment in WPP Open, taking the annual spend on our AI-powered marketing operating system to £300m in 2025 from £250m in 2024. A key metric for us is internal adoption and we have seen further progress in adoption, with 69,000 of our people (equivalent to c.85% of client-facing staff) using the platform actively on a monthly basis, up from 33,000/c.40% in December.
• Supporting WPP Media's ID to AI approach via the acquisition of InfoSum - The acquisition of InfoSum announced in April (see link) marks a major strategic step forward for WPP Media's AI-driven data offer. The acquisition of InfoSum embeds an AI-enabled, secure and privacy-enhancing data collaboration platform within WPP Open, enabling data-driven marketing and AI model training for WPP and its clients, and is a critical milestone in our journey to leapfrog traditional identity-led solutions. In May, InfoSum was named as a Leader in the IDC MarketScape (see link).
• WPP Media launches Open Intelligence - Leveraging the acquisition of InfoSum and progress on our global media platform, WPP Media launched Open Intelligence (see link). Open Intelligence is an AI-based tool designed to predict audience behaviour and marketing performance, powering Open Media Studio as well as other applications within WPP Open. The key characteristics are that it: (a) moves beyond reliance on identity data by combining it with other data sources, including partner first party data, for a more comprehensive, multimodal understanding of audiences; (b) employs a privacy-by-default approach enabled by InfoSum, enabling custom model training without moving or sharing data using federated learning; and (c) drives continuous optimisation of audience segmentation, creative development and media buying to improve ROI for our clients.
• Burson launches Reputation Capital - In June, Burson, WPP's global PR and communications agency, launched Reputation Capital, an AI-powered technology and consulting solution designed to connect drivers of reputation to specific business outcomes such as stock price, sales, or purchase intent (see link). Available through WPP Open, this tool provides clients with a live view of their reputation, quantifying the tangible economic value of building and maintaining a strong corporate perception and enabling immediate decision-making to drive commercial success for our clients. The launch of Reputation Capital follows the release of Decipher Tech in late March (see link). Decipher Tech uses AI-driven predictive believability and virality indicators to forecast how messaging will resonate and to drive engagement with stakeholders.
• Complementing direct investment with further strategic partnerships - During the course of the quarter, WPP expanded relationships with a number of strategic partners. In June (see link), WPP announced that it is the first advertising and marketing services company to integrate Symphony, TikTok's groundbreaking generative AI tools, into WPP Open giving WPP teams early access to TikTok's cutting-edge innovations, empowering clients to connect with TikTok's massive audience through dynamic and engaging content. Separately, linked with the launch of Open Intelligence, WPP Media signed a number of partnerships and integrations with leading platforms to help advertisers activate their first party data for enhanced audience reach, measurement and media optimisation. This includes separate agreements with Amazon Ads (see link) as well as a number of retailers and technology companies, including Criteo, DICK's Sporting Goods and Ocado Ads (see link). Finally, WPP expanded its partnership with Vercel (see link) which brings Vercel's pioneering AI technologies - v0 and AI SDK - to WPP teams and their clients. The first-of-its-kind partnership is expected to increase development efficiency by up to 25%, empowering WPP teams to deliver higher-value problem-solving through WPP Open and craft more innovative creative executions for clients.
2. Accelerate growth through the power of creative transformation
• Creative Company of the Year at Cannes Lions 2025 - In June, WPP was named Creative Company of the Year, a testament to the collective creative excellence of our agencies and their outstanding client partnerships (see link). In addition, WPP's Mindshare received the joint highest points tally in Media Network of the Year and Ogilvy and VML were placed in the top four for Creative Network of the Year.
Overall, WPP agencies collectively secured 168 Lions, featuring a coveted Titanium Lion and 10 Grand Prix. Key winning campaigns include Ogilvy's "Vaseline Verified" for Unilever (Titanium Lion & 2 Grand Prix), Mindshare's "Real Beauty Redefined for the AI Era" for Dove (Grand Prix for Media), DAVID's "Haaland Payback Time" for Supercell (Grand Prix in Entertainment), VML's "Preserved Promos" for Ziploc (Grand Prix for Creative Commerce), VML & OpenMind's "Phone Break" for Nestlé (Grand Prix for Outdoor) and AKQA's "Sounds Right" (Grand Prix for Innovation).
Although a non-financial metric, WPP's performance in awards showcases the Group's ability to deliver innovative approaches to audience engagement, deep cultural relevance, and pioneering, responsible applications of technology to drive growth for clients worldwide.
• New cross-channel B2B brand campaign - In May, WPP launched a cross-channel B2B brand campaign "Transforming How We Create", targeting business leaders and senior marketing decision-makers. Led by WPP's Chief Creative Officer Rob Reilly, the campaign was developed using WPP Open by a cross-agency team to highlight WPP's AI credentials, our pioneering work and ambition to lead in the age of AI. The campaign reached 75% of the target audience and saw engagement metrics (video completion and click-through rates) well above benchmark.
• Appointment of Global Creative & Innovation Lead - In July, Daniel Barak was appointed as Global Creative & Innovation Lead at WPP, joining from RG/A where he had been Global Executive Creative Director. At WPP, Daniel will work closely both with Rob Reilly, WPP's Global Chief Creative Officer and Elav Horwitz, Global Head of Strategic Partnerships and AI Solutions, to amplify WPP's creative and innovation efforts by delivering breakthrough creative campaigns, immersive brand experiences and innovation-led storytelling that leverages AI, data and technology.
3. Build world-class, market-leading brands
• WPP Media launches as fully integrated, AI-powered media company, replacing GroupM - In late May, WPP strengthened its position as the leading marketing services business for the intelligent era with the launch of WPP Media, an AI-driven media company that replaces GroupM (see link). Connected by WPP Open, WPP Media unites media, data, and production capabilities to deliver creative personalisation at scale, reflecting a strategic move towards simpler, more integrated solutions for clients in the AI era.
• WPP Media Business Intelligence releases latest 'This Year, Next Year' report - In June, WPP Media Business Intelligence published its Mid-Year Global Advertising Forecast for 2025, projecting global ad revenue to reach $1.08 trillion with 6.0% growth, a recalibration from previous forecasts due to global trade disruptions (see link). The report also introduces a new classification system for advertising activity (Content, Commerce, Location, and Intelligence) and examines key trends including the continued dominance of digital advertising, the rapid growth of retail media and user-generated content and the increasing impact of AI on media investment.
• New Leadership at AKQA - In early July, WPP announced the appointment of Baiju Shah, formerly Global Chief Strategy Officer at Accenture Song, as the new Global CEO of AKQA (see link). This strategic hire reflects WPP's mission to deliver outstanding creativity coupled with deep expertise in AI, data, and technology and follows a more comprehensive rebuild of the global leadership team announced in April (see link) which included the appointment of Miriam Plon Sauer as Chief Strategy Officer, Ben Royce as Chief Technology Officer, Tim Devine as Chief Innovation Officer and Jonathan Bolden as Chief Transformation Officer.
4. Execute efficiently to drive financial returns through margin and cash
• Reducing freelancer use - WPP continues to strategically reduce its reliance on external freelancers, driven by enhanced internal capabilities and technology-enabled efficiencies. This proactive approach has resulted in a 13% reduction in freelancer usage over the last 12 months, contributing to a c.25% overall reduction in freelancers over the past two years to fewer than 8,000 in the first half. Freelancers now represent 6.7% of our total workforce, down from 8.2% two years ago.
• Empowering teams with AI agents - During the quarter, we launched AgentBuilder Pro within WPP Open, upgrading our existing AgentBuilder tool. Powered by AgentBuilder, more than 50,000 agents have been created inside WPP driving significant advances in terms of internal productivity as well as driving better outcomes for clients. More broadly, deployment of AI-enhanced tools is associated with an increase in productivity for teams using WPP Open, incorporating improved production efficiency and a reduction in review and approval times.
Corporate governance, purpose and ESG
• Annual and Sustainability Reports - Our 2024 Annual Report was published at the end of March 2025. The report provides a comprehensive overview of WPP's financial results, strategic progress and future growth initiatives while including important updates on corporate governance and ESG. Additional context on ways WPP is working to deliver against its purpose can be seen in our 2024 Sustainability Report.
Business segments - revenue analysis
|
|
Q2 2025 |
H1 2025 |
||||
|
|
£ million |
+/(-) % reported |
+/(-) % LFL |
£ million |
+/(-) % reported |
+/(-) % LFL |
|
Global Integrated Agencies |
3,024 |
(6.6) |
(3.9) |
5,871 |
(4.0) |
(2.2) |
|
Public Relations |
176 |
(43.4) |
(9.3) |
351 |
(41.6) |
(7.8) |
|
Specialist Agencies |
220 |
(17.3) |
(0.5) |
441 |
(13.4) |
(0.5) |
|
Total Group |
3,420 |
(10.4) |
(4.0) |
6,663 |
(7.8) |
(2.4) |
Business segments - revenue less pass-through costs analysis
|
|
Q2 2025 |
H1 2025 |
||||
|
|
£ million |
+/(-) % reported |
+/(-) % LFL |
£ million |
+/(-) % reported |
+/(-) % LFL |
|
Global Integrated Agencies |
2,183 |
(8.7) |
(6.0) |
4,302 |
(6.4) |
(4.5) |
|
Public Relations |
168 |
(42.7) |
(7.8) |
335 |
(41.0) |
(7.2) |
|
Specialist Agencies |
193 |
(15.0) |
(1.9) |
389 |
(10.8) |
(0.4) |
|
Total Group |
2,544 |
(12.6) |
(5.8) |
5,026 |
(10.2) |
(4.3) |
Business segments - headline operating profit analysis
|
£ million |
H1 2025 |
% margin1 |
H1 2024 |
% margin1 |
|
Global Integrated Agencies |
352 |
8.2 |
551 |
12.0 |
|
Public Relations |
39 |
11.6 |
80 |
14.1 |
|
Specialist Agencies |
21 |
5.4 |
15 |
3.4 |
|
Total Group |
412 |
8.2 |
646 |
11.5 |
1. Headline operating profit as a percentage of revenue less pass-through costs.
Business segment and regional analysis
Regional - revenue analysis
|
|
Q2 2025 |
H1 2025 |
||||
|
|
£ million |
+/(-) % reported |
+/(-) % LFL |
£ million |
+/(-) % reported |
+/(-) % LFL |
|
N. America |
1,279 |
(12.8) |
(2.8) |
2,537 |
(8.8) |
(1.1) |
|
United Kingdom |
517 |
(5.0) |
(6.6) |
1,011 |
(4.4) |
(6.2) |
|
W Cont. Europe |
713 |
(6.4) |
(1.1) |
1,351 |
(7.3) |
(1.0) |
|
AP, LA, AME, CEE1 |
911 |
(12.6) |
(6.2) |
1,764 |
(8.6) |
(3.1) |
|
Total Group |
3,420 |
(10.4) |
(4.0) |
6,663 |
(7.8) |
(2.4) |
Regional - revenue less pass-through costs analysis
|
|
Q2 2025 |
H1 2025 |
||||
|
|
£ million |
+/(-) % reported |
+/(-) % LFL |
£ million |
+/(-) % reported |
+/(-) % LFL |
|
N. America |
974 |
(15.5) |
(4.6) |
1,966 |
(10.9) |
(2.4) |
|
United Kingdom |
381 |
(3.8) |
(6.5) |
749 |
(3.9) |
(6.0) |
|
W Cont. Europe |
534 |
(12.2) |
(6.5) |
1,021 |
(12.3) |
(5.5) |
|
AP, LA, AME, CEE |
655 |
(13.4) |
(6.8) |
1,290 |
(11.0) |
(5.4) |
|
Total Group |
2,544 |
(12.6) |
(5.8) |
5,026 |
(10.2) |
(4.3) |
Regional - headline operating profit analysis
|
£ million |
H1 2025 |
% margin2 |
H1 2024 |
% margin2 |
|
N. America |
281 |
14.3 |
336 |
15.2 |
|
United Kingdom |
47 |
6.3 |
78 |
10.0 |
|
W Cont. Europe |
36 |
3.5 |
117 |
10.1 |
|
AP, LA, AME, CEE |
48 |
3.7 |
115 |
7.9 |
|
Total Group |
412 |
8.2 |
646 |
11.5 |
1. Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.
2. Headline operating profit as a percentage of revenue less pass-through costs.