WPP losses intensify as hopes turn to AI 'golden age' for marketing

"WPP's new CEO Cindy Rose did not mince words when assessing the ad-holding group's financial standing during a presentation with investors last week. "Our recent performance has not been acceptable," said Rose in brief remarks at the top of the earnings call. This was the first quarterly trading update headed by the former Microsoft executive since she took the reins at the agency network on Sept. 1, replacing Mark Read."

"The advertising giant saw revenue less pass-through costs, an important measure of agency health, fall 5.9% on a like-for-like (LFL) basis to 2.46 billion pounds, or about $3.2 billion, in Q3 - a worse slide than previously anticipated. The company again slashed its full-year guidance, with expectations for LFL growth in revenue less pass-through costs to decline between 5.5% and 6% in 2025 versus prior estimates of declines between 3% and 5%."

"WPP's global integrated agencies posted LFL losses of 6.2% in Q3, with media-investment arm WPP Media down 5.7% over the period. WPP Media, which has undergone executive shuffles and restructurings, continues to be dogged by large account losses that will sting in Q4. The media-investment arm formerly known as GroupM saw the Mars business and Coca-Cola's media and data duties in North America go to rival Publicis Groupe earlier this year, two significant blows."

WPP reported a 5.9% like-for-like decline in revenue less pass-through costs to £2.46 billion in Q3, a steeper fall than expected. The company cut full-year guidance, forecasting LFL declines of 5.5–6% in 2025 and projecting Q4 LFL declines of 7.5–9.5%. Global integrated agencies fell 6.2% and WPP Media was down 5.7% in Q3. WPP Media has lost major accounts including Mars and Coca-Cola in North America and has faced executive reshuffles and restructurings. CFO Joanne Wilson cited volatility in client budgets and said growth headwinds from client losses will sustain into 2026.

Read at Marketing Dive