30th Oct 2025 10:25
(Alliance News) - WPP PLC on Thursday said its performance in the year-to-date was at the "low-end of expectations" as it cut the company's outlook.
The London-based advertising agency firm said revenue in the third quarter fell 8.4% to GBP3.26 billion, and was down 3.5% on a like-for-like basis. Revenue less pass-through costs slumped 11% to GBP2.46 billion, falling 5.9% like-for-like.
Shares in WPP tumbled 12% to 316.60 pence on Thursday morning in London.
In the year-to-date, revenue was down 8.0% to GBP9.92 billion, falling 2.8% like-for-like. Less pass-through costs, it was 11% lower at GBP7.49 billion, down 4.8% like-for-like.
The company said its performance in the third quarter was hurt by a "step down" in its media planning and buying business WPP Media.
WPP said WPP Media saw a like-for-like decline in revenue less pass-through costs of 5.7%. This was driven by client assignment losses in the US and UK, a "significant" deterioration in Germany and moderating declines in China.
Due to the impact of further client assignment losses from October, WPP said it anticipates the like-for-like decline in revenue less pass-through costs to deteriorate further in the fourth quarter.
WPP said its Public Relations vertical continues to face a "challenging environment", but expects an improving trend into year-end based on new momentum, particularly in the US.
WPP said its specialist healthcare media planning and buying agency CMI Media Group sustained double-digit growth from the first half of the year.
Based on trading in the year-to-date, WPP has cut expectations.
The firm said it expects 2025 like-for-like revenue less pass-through costs to fall between 5.5% and 6.0%. The outlook has been cut from a 3% to 5% decline guided previously.
WPP said it expects a headline operating profit margin of around 13%. Its prior outlook was for a headline operating profit margin fall between 50 to 175 basis, excluding the impact of foreign exchange. Its headline operating profit margin in 2024 was 15.0%.
Chief Executive Cindy Rose said the company will position its offering "to be much simpler, more integrated, powered by data and AI" and "efficiently priced" in order to improve its performance.
Rose said: "My ambition is for WPP to lead our industry in terms of innovation, client delivery and organic growth. However, I acknowledge that our recent performance is unacceptable and we are taking action to address this."
"There is a lot to do, and it will take time to see the impact, but in my first 60 days we are already moving at pace with some initiatives already announced and more to come. We know what it takes to win: we are optimistic, energised and confident that we're building the right plan and the right culture to secure a bright future for WPP, our people, our clients, and our shareholders. We look forward to sharing more details early in the new year," Rose added.
By Roya Shahidi, Alliance News reporter
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