WPP’s H1 Revenue Misses Expectations, Dividend Halved

WPP (LON:WPP) reported disappointing interim results for the first half of 2025, with revenue and operating profit falling short of expectations amid client spending pressures and a slower new business environment.

The company’s dividend was halved as tough macro conditions hit margins and top-line growth

The advertising giant posted revenue of £6.66 billion, down 7.8% year-on-year on a reported basis and 2.4% like-for-like (LFL). 

Revenue less pass-through costs fell 10.2% reported and 4.3% LFL to £5.03 billion, narrowly missing the company-compiled consensus estimate of £5.031 billion.

Headline operating profit dropped 36.2% to £412 million, with a margin of 8.2%, down from 11.5% in H1 2024. This came in below the consensus estimates of a margin of 8.3%, due largely to lower revenues and increased severance costs, particularly at WPP Media. 

Reported operating profit slumped 47.8% to £221 million, impacted by a £116 million goodwill impairment.

Diluted earnings per share (EPS) also fell sharply to 4.0p, down from 18.8p a year earlier. Reflecting the weaker performance, the Board halved the interim dividend to 7.5p.

CEO Mark Read acknowledged a challenging first half, but pointed to strategic progress, including restructuring of WPP Media, the acquisition of InfoSum, and expanding AI capabilities through WPP Open.

Incoming CEO Cindy Rose, who takes the helm on 1 September, will lead a review of strategy and capital allocation. The group maintained its full-year guidance, forecasting LFL revenue less pass-through costs to decline 3–5% and headline operating profit margin to fall 50–175 basis points.