WPP has issued a trading update for the first half of 2025, noting a deterioration in performance during Q2 and lowering its forecasts for full year revenue and profit. CEO Mark Read blamed 'a challenging trading environment with macro pressures intensifying', as well as lower net new business.

The global group will report interim results on 7th August, but says it expects H1 like-for-like (LFL) revenue less pass-through costs to decline by -4.2% to -4.5% to around £5.0bn - below expectations and previous estimates (flat to -2%). As a result, and combined with severance action at WPP Media, H1 headline operating profit is expected to be in the range of £400m to £425m, a margin decline of 280 to 330 bps year-on-year, excluding FX effects. WPP is also lowering its guidance for the full year, with 2025 LFL revenue less pass-through costs now expected to fall by between 3% and 5%, and headline operating profit margin to decline 50 to 175 bps (excluding FX) despite continued action to lower costs.

WPP says it continues to take action on costs, and expects these to deliver an improved margin in the second half - the action includes Q2 job cuts at WPP Media, and the firm says this should have 'a broadly neutral impact for the full year' and generate £150m+ of annualised gross costs savings.

'Since the start of the year, we have faced a challenging trading environment', says Read (pictured), 'with macro pressures intensifying and lower net new business. While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.

'Our focus remains on ensuring the right balance between investing in the business for the long-term and continuing to reduce structural costs, while taking appropriate actions to respond to the current trading environment.'

Group home page: www.wpp.com .