WPP sees sharp decline in China, flat growth in India amid broader APAC slowdown
In the rest of the world, including Asia Pacific, Latin America, Africa, and Central & Eastern Europe, WPP posted revenue of £1,764 million, down 8.6%, with revenue less pass-through costs of £1,290 million, down 11%.
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WPP, one of the world’s largest advertising and marketing conglomerates, reported a decline in revenue and profitability for the first half of 2025, as macroeconomic pressures, client budget cuts, and restructuring costs weighed heavily on financial performance. Despite the challenging environment, the company accelerated investments in artificial intelligence (AI), media simplification, and data infrastructure in a bid to reposition itself for long-term growth.
WPP’s revenue for the six months ended June 30, 2025, stood at £6,663 million, representing a 7.8% decline compared to the same period in 2024. Revenue less pass-through costs—a key measure for advertising holding companies—was reported at £5,026 million, down 10.2% year-on-year and 4.3% on a like-for-like basis. This drop was consistent with the trading update the company issued in July 2025.
The operating profit came in at £412 million, down 36.2% from £646 million in the first half of 2024, resulting in a headline operating margin of 8.2%, compared to 11.5% in the prior year. Reported operating profit saw an even sharper decline, falling 47.8% to £221 million, largely due to a £116 million goodwill impairment, increased severance costs, and a slower new business environment. The reported operating margin dropped to 3.3%, down from 5.9% last year.
The diluted earnings per share dropped 35.3% to 20.0 pence, while reported diluted EPS plummeted by 78.7% to just 4.0 pence. Reflecting the reduced profitability and desire to maintain flexibility, the company halved its interim dividend to 7.5 pence per share, compared to 15.0 pence in the first half of 2024.
WPP’s former CEO Mark Read had acknowledged the challenges faced by the business but emphasized progress in reshaping WPP Media and investing in future growth areas. He highlighted the launch of Open Intelligence, the acquisition of InfoSum, and the growing adoption of the WPP Open platform as key advancements. He also confirmed that Cindy Rose would take over as CEO on 1 September 2025, with a mandate to conduct a full strategic review and assess future capital allocation priorities.
In terms of segment performance, the Global Integrated Agencies division, which includes WPP Media, reported revenue of £5,871 million, a 4.0% decline, while revenue less pass-through costs fell by 6.4% to £4,302 million. Within this division, WPP Media declined by 2.9% on a like-for-like basis during the first half, impacted by continued client losses and a challenging macroeconomic backdrop. Other integrated creative agencies reported a 5.8% drop in LFL revenue, with Ogilvy suffering a high single-digit decline due to reduced project-based work. However, agencies like VML and Hogarth performed relatively better, benefiting from new business wins.
Public Relations revenue dropped sharply to £351 million from £601 million, with revenue less pass-through costs down 41% to £335 million. This reflected lower discretionary spending, especially in Europe. Despite these declines, the PR segment maintained a relatively strong headline operating margin of 11.6%.
Specialist Agencies saw revenue fall to £441 million, down from £509 million, while revenue less pass-through costs dropped 10.8% to £389 million. However, some pockets of resilience were noted, particularly in CMI Media Group, which continued to post strong growth driven by demand in the healthcare sector.
Regionally, North America remained WPP’s largest market, generating £2,537 million in revenue, a decline of 8.8%, with revenue less pass-through costs falling 10.9% to £1,966 million. Headline operating profit in the region stood at £281 million with a margin of 14.3%, making it the most profitable geography despite the decline.
The UK market delivered revenue of £1,011 million, down 4.4%, while revenue less pass-through costs declined by 3.9% to £749 million. Operating profit in the UK dropped to £47 million from £78 million in the prior year, with the margin compressing to 6.3%.
Western Continental Europe recorded revenue of £1,351 million, down from £1,458 million, with revenue less pass-through costs falling to £1,021 million. The region’s operating profit dropped steeply to £36 million, reflecting continued weakness in markets such as France and Italy, as well as one-off client losses.
In the rest of the world, including Asia Pacific, Latin America, Africa, and Central & Eastern Europe, WPP posted revenue of £1,764 million, down 8.6%, with revenue less pass-through costs of £1,290 million, down 11%. India remained stable with flat growth (0.1%), but China experienced a 16.6% contraction, impacted by macroeconomic uncertainty and client attrition.
WPP’s top 25 clients delivered flat like-for-like growth (0.1%) in the first half. The Tech & Digital Services, Automotive, and Healthcare sectors remained broadly stable, though all saw a softening in Q2. The Consumer Packaged Goods (CPG) sector, which had been steady in Q1, saw a drop-off in the second quarter.
From a cash flow perspective, the company reported an adjusted operating cash outflow of £985 million, compared to a £587 million outflow in H1 2024. Working capital outflows increased to £1,348 million, up from £1,056 million a year earlier. Adjusted free cash flow worsened to -£1,272 million, while adjusted net cash flow stood at -£1,491 million. The company attributed this to seasonal patterns, higher severance costs, and increased investment, particularly in AI and platform development.
As of 30 June 2025, WPP’s adjusted net debt rose to £3.3 billion from £1.7 billion at year-end 2024. Average adjusted net debt for the period was £3.4 billion, slightly lower than the £3.6 billion recorded at the same point last year. The company’s average net debt to EBITDA ratio rose to 1.98x, above its target range of 1.5x to 1.75x.
Looking ahead, WPP maintained its guidance for full-year 2025, expecting like-for-like revenue less pass-through costs to decline between 3% and 5%. The company also forecasts its headline operating profit margin to contract by 50 to 175 basis points year-on-year, excluding foreign exchange impacts. Capital expenditure is projected to be approximately £220 million, while the company plans to reduce restructuring costs to £90 million.
Despite current headwinds, WPP reiterated its medium-term financial targets of achieving more than 3% like-for-like revenue growth, a 16–17% headline operating profit margin, and over 85% conversion of operating profit to cash flow. The leadership emphasized that strategic focus on AI, data, creative innovation, and a simplified operating structure would position the group for future growth and margin improvement.
