WPP (WPP) Trading Update summary

Trading performance and revised guidance

• H1 like-for-like net sales/revenue less pass-through costs expected to decline by 4.2%-4.5%, with Q2 down 5.5%-6% due to increased client caution, weaker new business, and one-off factors.

• Full-year 2025 net sales/revenue guidance revised to a 3%-5% like-for-like decline, compared to previous guidance of flat to -2%.

• Headline operating profit for H1 expected at £400-425 million, with margin of 8%-8.5%, reflecting a 280-330 bps year-on-year decline.

• H1 revenue less pass-through costs expected to be around £5.0bn.

• Severance costs in H1 around £100 million, mainly from WPP media restructuring, with further cost actions planned and annualised gross cost savings of £150m+ expected.

Drivers of performance and outlook

• Deterioration in Q2 driven by deeper client spending cuts, especially in CPG and auto, lower net new business, and one-off factors.

• Net new business impact for the year now expected to be negative, at 100-150 bps, due to incremental client losses and lower conversion.

• Macro environment impact more pronounced than anticipated, with increased client budget cuts across sectors.

• H2 margin expected to improve as restructuring benefits flow through, with headcount down 3.5% since year start and ongoing cost actions.

• FY 2025 headline operating profit margin expected to decline by 50 to 175 bps year-on-year (excluding FX).

Strategic priorities and business context

• New WPP media strategy implementation progressing, but not yet reflected in business performance.

• InfoSum acquisition positively received, addressing data strategy gaps.

• Media new business opportunities down sharply, with pitches running at a third of last year's level.

• AI and WPP Open investments maintained, with strong client engagement.

• Restructuring actions expected to deliver cost savings and improved competitiveness in H2.