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WPP PLC on Wednesday lowered full-year guidance after weaker-than-expected trading in the first half. The London-based advertising agency described the market backdrop as ‘challenging’, and the half year also will see the impact of one-off costs such as severance at recently downsized subsidiary WPP Media. WPP now expects a 2025 like-for-like revenue decline, excluding pass through costs, of between 3% and 5%. It predicts a decline in headline operating profit margin of 50 to 175 basis points, excluding foreign exchange. Back in April, WPP estimated that like-for-like revenue in 2025 would range from flat to a 2% fall on 2024. It expected an ‘around flat’ margin outcome. Following Wednesday morning’s trading update, WPP shares dropped 14% to £451.76 in London, the worst performer in the FTSE 100 index, which itself was up 0.1%. WPP now forecasts like-for-like revenue less pass-through costs to decline in the range of 5.5% to 6.0% in the second-quarter, and by 4.2% to 4.5% in the first half. Headline operating profit in the first half is expected between £400 million and £425 million, a decline from £646 million a year before. WPP predicts ‘continued macro uncertainty weighing on client spend’. Chief Executive Officer Mark Read commented : ‘Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business. While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.’ Read 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.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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