WPP (LSE:WPP) has reported first-half revenue of £4,745m, down 5.6% on a reported basis and 4.7% on a like-for-like (LFL) basis, as legacy account losses continued to weigh on the advertising and marketing services group.
Reported revenue fell 4.4% to £6,373m, with the decline narrowing in the second quarter to 2.8% LFL from a steeper first-quarter drop, helped by easing comparisons and an improved trend at WPP Media. Headline operating profit came in at £398m, a margin of 8.4%, up 0.2 percentage points LFL on lower severance costs and cost savings, while reported operating profit rose 18.1% to £261m on lower impairment charges.
"I am encouraged by our first-half performance which is in line with our expectations," said chief executive Cindy Rose, adding that Q2 saw "a further sequential improvement in LFL growth".
Adjusted net debt stood at £2,935m at 30 June, down from £3,261m a year earlier, aided by a £125m benefit from IFRS 9 accounting amendments. The board declared an interim dividend of 7.5p, unchanged from last year, consistent with maintaining a 15.0p total annual payout.
WPP's top 25 clients saw LFL revenue less pass-through costs decline 6.3% in H1, improving to a 3.2% fall in Q2. The company is targeting £100m of in-year cost savings under its Elevate28 restructuring plan and expects disposal proceeds of more than £200m this year.
WPP maintained its full-year headline operating margin guidance of 12% to 13% and expects H2 LFL revenue less pass-through costs to decline by low to mid-single digits.
News Intelligence what this means for the company
WPP's first-half revenue fell 4.7% like-for-like, with legacy client losses persisting, but the company held full-year margin guidance at 12–13% and signalled improving momentum into H2. The stabilisation in Q2 (2.8% LFL decline vs. steeper Q1 drop) and maintained dividend (7.5p interim, supporting 15.0p annual) suggest management confidence in a turnaround, though top 25 clients still contracted 6.3% in H1—a headwind that eased only modestly to 3.2% in Q2.
Elevate28 cost-savings programme is on track (£100m targeted in-year), and adjusted net debt fell to £2,935m from £3,261m year-on-year, but the persistence of client losses and low-single-digit H2 revenue declines ahead mean margin recovery still depends on execution of restructuring and disposal proceeds (>£200m expected) rather than organic demand rebound.
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