WPP has told investors it is preparing to move into the “build” phase of its Elevate28 strategy, despite reporting a 4.4 per cent year-on-year revenue decline in its first-half earnings.
The advertising giant reported revenue of just under £6.4 billion for the six months to June, down from £6.66 billion a year earlier, a result it said was in line with expectations and its full-year guidance.
Operating profit rose 18 per cent from £221 million to £261 million, although headline operating profit slipped 3.4 per cent.
WPP pointed to the launch of its Enterprise Solutions unit, created to “capture high-demand growth for enterprise AI transformation”, as evidence its transformation strategy is gaining traction.
It also highlighted the rollout of WPP Creative in March, which consolidated its legacy creative businesses into four regional profit-and-loss structures designed to improve collaboration, simplify operations and drive more integrated client wins.
The group secured several major client victories during the first half, including consolidated mandates for The Estée Lauder Companies, Henkel and Wendy’s.
It also picked up significant regional assignments across Latin America, Europe and Asia Pacific, while retaining major accounts including Skechers across multiple markets, Tesco in the UK and Central Europe, Huawei in China, L’Oréal in Australia and New Zealand, Uber in APAC and Deutsche Bahn in Germany.
In Asia Pacific, revenue fell 3.8 per cent year on year, driven by a 4.7 per cent decline in Australia and a 2.9 per cent drop in India, which WPP said reflected the timing of major sporting events. Growth of 2.6 per cent in China partially offset those declines.
Despite the dip in the holdco’s overall revenue, WPP Media in Australia continues to see strong new business success, with recent client wins including Asahi, Michael Hill, BYD and major retentions including L’Oreal and Uber.
“Our momentum over the last nine months gives me confidence that we are firmly on the right path. The organisational structure and operating model are in place,” WPP CEO Cindy Rose told investors during the earnings call.
She highlighted its “integrated client proposition is working”.
“The cultural shift towards accountability, client obsession, and a hunger to win together as one team is real. We’re delivering the stabilization phase of our plan, and the leading indicators demonstrate the progress we’re making.”
Rose added: “You’ll see us continuing to invest to make our return to growth sustainable as we move to the build phase of our plan in 2027. Finally, you’ll see the improving trajectory in organic top-line growth, margin expansion, and improved financial leverage that we anticipate in 2027.”
