AD Agencies
WPP slashes dividend in half as advertising giant struggles with client cuts
LONDON: WPP, the world’s biggest advertising agency, delivered a sobering performance in the first half of 2025, slashing its interim dividend by 50 per cent as profits tumbled and clients tightened their belts.
The London-listed giant reported headline operating profit of £412m for the six months to June, down 36 per cent from £646m a year earlier. Revenue less pass-through costs—the industry’s preferred measure—fell 4.3 per cent on a like-for-like basis to £5.03bn.
The company cut its interim dividend to 7.5p per share from 15p previously, with the board citing the need to give incoming chief executive Cindy Rose “room to review the group’s strategy and capital allocation policy”.
Mark Read, who steps down as chief executive on 1 September after seven years at the helm, acknowledged the difficulties. “It has been a challenging first half given pressures on client spending and a slower new business environment,” he said.
The results underscore the advertising industry’s struggles as companies slash marketing budgets amid economic uncertainty. WPP’s top 25 clients managed only flat growth, while key sectors including consumer goods and automotive weakened in the second quarter.
WPP has made “significant progress” repositioning its media division, which replaced GroupM in May as part of chief executive Read’s drive to simplify the sprawling conglomerate. The unit, now called WPP Media, has undergone substantial restructuring to make it more client-focused.
The company expects severance action taken in the second quarter alone to generate more than £150m of annual cost savings from 2026. Headcount has fallen 3.7 per cent since the start of the year to 104,000 people.
Despite the gloom, WPP continues to invest heavily in artificial intelligence and data capabilities. Usage of WPP Open, its AI-powered marketing platform, has surged, with 85 per cent of client-facing staff now using it monthly, up from 60 per cent in March.
The company also completed the acquisition of InfoSum, a data collaboration platform, and launched Open Intelligence, an AI tool designed to predict audience behaviour.
Looking ahead, WPP expects like-for-like revenue less pass-through costs to decline between 3 per cent and 5 per cent for the full year. Headline operating profit margin is forecast to drop by 50 to 175 basis points.
The company’s performance varied widely by region. North America, WPP’s largest market, saw revenue less pass-through costs fall 2.4 per cent, while China plunged 16.6 per cent amid persistent macroeconomic pressures.
At the prestigious Cannes Lions festival in June, WPP was named creative company of the year, providing some cheer amid the financial turbulence. The group’s agencies secured 168 Lions, including a coveted Titanium Lion.
Average adjusted net debt stood at £3.4bn at the end of June, giving a debt-to-EBITDA ratio of 1.98 times—outside the company’s target range of 1.5 to 1.75 times.
Shares in WPP have struggled this year as investors fret about the advertising downturn and the company’s transformation efforts. The stock trades well below pre-pandemic levels, reflecting the challenges facing traditional advertising agencies in an increasingly digital world.
Rose, who joins from Microsoft, faces the daunting task of restoring growth while maintaining WPP’s position as the industry leader. Her strategic review will be closely watched by investors hoping for a clearer path forward for the advertising behemoth.
AD Agencies
Publicis Groupe to acquire 160over90 from WME Group
Deal aims to build data-led platform linking brands, fans and culture at scale
MUMBAI: Publicis Groupe has agreed to acquire 160over90 from WME Group, in a move that signals a major push into the fast-growing world of sports and culture-led marketing.
The deal, subject to regulatory approvals, will see Publicis combine its existing Publicis Sports capabilities with 160over90’s global footprint to create what it calls a unified, end-to-end platform connecting brands with audiences through sport, entertainment and culture.
Founded as a division of WME Group, 160over90 has built a reputation for delivering high-impact campaigns across some of the world’s biggest sporting moments, including the Super Bowl, Olympic Games and FIFA World Cup. With over 670 employees across the US, UK, EMEA and Apac, the agency works with global brands to create experiences that resonate both on and off the field.
The acquisition reflects a broader shift in marketing, where sport has become a central pillar of premium media. With the global sports media market estimated at $150 billion and sponsorships crossing $90 billion, brands are increasingly looking for more integrated ways to engage audiences.
Publicis is betting that a data-led approach will be the differentiator. By integrating 160over90 with its own capabilities, including the Epsilon identity ecosystem and Influential network, the company aims to offer marketers a seamless way to plan, activate and measure campaigns across media, sponsorships, live events and creator partnerships.
Publicis Groupe CEO Arthur Sadoun said, “After building our industry-leading position in identity resolution, commerce, and creators, our next big bet is sport. In the age of AI, it has become one of the most high-value channels for clients.”
He added that combining 160over90’s expertise with Publicis’ data and technology stack would help “connect brands to fans in ways that are both meaningful and measurable”.
Echoing the sentiment, Publicis Connected Media CEO Dave Penski said, “Sport has become the most powerful intersection of culture, commerce and community,” highlighting the growing need to treat sports marketing as a measurable channel rather than just brand-building.
As part of the deal, Publicis will also enter into a strategic partnership with WME Group, enabling closer collaboration on talent, content and brand partnerships. WME Group president Mark Shapiro said the tie-up would open up new opportunities for talent and brands to scale their ambitions globally.
Post acquisition, the combined Publicis Sports entity will report to Suzy Deering, while Robbie Henchman will remain with WME Group to oversee the ongoing partnership.
The move builds on Publicis’ recent investments in the space, including acquisitions of Adopt and Bespoke in 2025 and a partnership with Magic Johnson Enterprises, underscoring its intent to dominate the intersection of sport, culture and commerce.
As brands chase both attention and accountability, Publicis’ latest play suggests the future of sports marketing may be less about moments alone and more about measurable impact at scale.
