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WPP (WPP) investor relations material
WPP H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
H1 2025 organic net sales declined 4.3% year-over-year, with Q2 down 5.8%, reflecting macro uncertainty, client spending cuts, and slower new business.
Headline operating margin was 8.2%, down 2.9–3.3 percentage points, mainly due to severance costs and revenue decline, especially at WPP Media.
Strategic actions included rapid adoption of WPP Open, WPP Media transformation, new partnerships, and investment in AI and data capabilities.
Headcount reduced by 3.7% since year start, reflecting cost savings and efficiency measures.
CEO transition announced, with Cindy Rose to take over in September and lead a strategic review.
Financial highlights
H1 2025 revenue less pass-through costs: £5,026m, down 10.2% reported and 4.3% like-for-like; Q2 down 5.8% LFL.
Headline operating profit was £412m, margin 8.2% (down from 11.5%); headline diluted EPS 20.0p, down 35% year-over-year.
Interim dividend reduced by 50% to 7.5p to retain financial flexibility ahead of CEO transition and strategy review.
Adjusted net debt at June 2025: £3.3bn, with available liquidity of £3bn; average net debt/headline EBITDA at 1.98x.
Cash restructuring costs in H1 2025: £40m–£45m, down from £149m–£153m year-over-year.
Outlook and guidance
Full-year 2025 guidance: like-for-like revenue less pass-through costs expected to decline 3% to 5%.
Headline operating margin expected to decline 50 to 175 basis points year-over-year, excluding FX impact.
Adjusted operating cash flow before working capital expected at £1.1bn–£1.2bn.
Headline effective tax rate for full year expected to be 31%.
M&A expected to reduce revenue less pass-through costs by 3.0 points, mainly due to FGS Global disposal.
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