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WPP PR Revenue Down 7.2% In First Half, 7.8% In Q2
(MENAFN- PRovoke)
LONDON - WPP's public relations business posted a 7.2% like-for-like decline in revenue less pass-through costs during the first half of 2025, according to the company's interim financial results. The downturn accelerated in the second quarter, when like-for-like revenue declined 7.8%, reflecting continued client pullbacks on discretionary spending and delays in project-based work.
Revenue less pass-through costs for the PR segment totaled £335 million in H1, down from £568 million in the same period last year on a reported basis - a 41% decline that includes the impact of the 2024 sale of FGS Global. The segment's headline operating profit margin also declined, falling from 14.1% to 11.6% year over year.
WPP noted that the public relations business "continued to face a challenging environment for client discretionary spending, in particular in Europe." However, the company also reported“improved new business momentum in H1, in particular in the US.”
While WPP does not break out performance of individual PR brands, the company includes public relations as one of its three core business segments, alongside Global Integrated Agencies and Specialist Agencies. PR underperformed both of those segments in the first half: Global Integrated Agencies declined 4.5% like-for-like, while Specialist Agencies fell 0.4%.
WPP reaffirmed its full-year guidance of a 3% to 5% decline in like-for-like revenue less pass-through costs, and a 50 to 175 basis point contraction in headline operating margin. The group reported overall like-for-like revenue less pass-through costs down 4.3% in H1, with headline operating profit down 36% year over year.
“It has been a challenging first half given pressures on client spending and a slower new business environment,” said outgoing CEO Mark Read. He also confirmed that incoming CEO Cindy Rose, who takes the helm September 1, will lead a strategic review of the company's capital allocation and growth strategy.
Revenue less pass-through costs for the PR segment totaled £335 million in H1, down from £568 million in the same period last year on a reported basis - a 41% decline that includes the impact of the 2024 sale of FGS Global. The segment's headline operating profit margin also declined, falling from 14.1% to 11.6% year over year.
WPP noted that the public relations business "continued to face a challenging environment for client discretionary spending, in particular in Europe." However, the company also reported“improved new business momentum in H1, in particular in the US.”
While WPP does not break out performance of individual PR brands, the company includes public relations as one of its three core business segments, alongside Global Integrated Agencies and Specialist Agencies. PR underperformed both of those segments in the first half: Global Integrated Agencies declined 4.5% like-for-like, while Specialist Agencies fell 0.4%.
WPP reaffirmed its full-year guidance of a 3% to 5% decline in like-for-like revenue less pass-through costs, and a 50 to 175 basis point contraction in headline operating margin. The group reported overall like-for-like revenue less pass-through costs down 4.3% in H1, with headline operating profit down 36% year over year.
“It has been a challenging first half given pressures on client spending and a slower new business environment,” said outgoing CEO Mark Read. He also confirmed that incoming CEO Cindy Rose, who takes the helm September 1, will lead a strategic review of the company's capital allocation and growth strategy.
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