MAM
WPP’s profits fade as client cuts and AI bets reshape strategy
Ad giant posts 5.4 per cent LFL sales drop, cuts dividend and jobs, bets on AI turnaround.
MUMBAI: It appears the world’s largest advertising group has found that even the best pitch cannot always sell a difficult set of results. WPP’s 2025 preliminary results reveal a year where the creative juices were flowing, but the cash followed a somewhat more sluggish current.
The headline figures suggest that WPP spent much of 2025 swimming against a persistent tide. Like-for-like (LFL) net sales, which are defined as revenue less those pesky pass-through costs, slipped by 5.4 per cent. The group attributed this slide to a double whammy of client losses and client spending cuts, particularly in the final quarter where the chill was felt most acutely.
Reported revenue stood at £13,550 million, which was down from £14,741 million in 2024, while headline operating profit took a 22.6 per cent tumble to £1,321 million. This left the headline operating margin at 13.0 per cent; this was a drop from the 15.0 per cent seen the previous year and was driven largely by negative operating leverage and the costs associated with saying “goodbye” to staff.
No corner of the globe was entirely immune to the slowdown. The UK saw a LFL net sales decrease of 7.6 per cent, while North America dipped by 4.6 per cent. China proved a particularly tough market with a sharp 14.3 per cent decline, though India offered a rare silver lining with growth of 3.8 per cent.
Sector-wise, the pain was most visible in Telecom, Media and Entertainment, where spending cratered by 10.1 per cent. Consumer Packaged Goods (CPG) also tightened the purse strings and was down 7.1 per cent. Conversely, Healthcare & Pharma remained a healthy outlier, as it grew by 2.1 per cent.
In response to the squeeze, WPP has been busy reorganising the furniture. Structural savings are being wrung from the mergers that created VML and Burson, alongside a simplification of WPP Media. Headcount has been trimmed significantly; it fell from approximately 108,000 to 99,000.
The company also took a massive £641 million hit on goodwill impairment, which was primarily linked to its Ogilvy and AKQA brands; this reflected a more cautious outlook on their carrying value.
Despite the tightening of belts, WPP is not skimping on the future. Investment continues to pour into “WPP Open”, its AI-driven operating system, as the group bets big on data and generative technology to regain its edge.
However, the immediate horizon remains a bit misty. Guidance for 2026 suggests that LFL revenue less pass-through costs will continue to decline by mid to high-single digits in the first half of the year. While an improving trajectory is expected in the second half, investors are being asked for a fair amount of patience.
The dividend has also felt the pinch, with the total payout for the year slashed to 15.0p from 39.4p in 2024. For now, it seems WPP is focused on making its own brand more efficient before it can get back to winning over the rest of the world.
Brands
Axis Bank named Official Banking Partner of DP World PGTI
Partnership supports all tournaments this season to grow professional golf in India.
MUMBAI: Axis Bank just teed up a hole-in-one partnership because when a bank sponsors golf’s biggest swing in India, even the fairways feel more financially secure. Axis Bank has been appointed Official Banking Partner of the DP World Professional Golf Tour of India (DP World PGTI), strengthening its commitment to sporting excellence and community engagement while backing the growth of professional golf across the country.
Under the partnership, Axis Bank will support all DP World PGTI tournaments this season, contributing to talent development, enhanced tournament experiences and wider fan engagement. The collaboration aligns the bank’s values of precision, discipline and trust with the Tour’s focus on performance and opportunity.
Axis Bank executive director Munish Sharda said, “We are pleased to partner with DP World PGTI as its Official Banking Partner. Golf embodies precision, discipline, and a pursuit of excellence qualities that strongly reflect who we are at Axis Bank. This association also strengthens our engagement with India’s growing premium customer segments, where the sport has a deep and enduring connect.”
Professional Golf Tour of India president Kapil Dev said, “We are extremely pleased to welcome Axis Bank as a Tour Partner of the DP World Professional Golf Tour of India. Partnerships of this stature play a vital role in strengthening the foundation of the Tour, enhancing opportunities for our players, and expanding the sport’s reach across the country.”
Professional Golf Tour of India CEO Amandeep Johl added, “Axis Bank’s strong legacy of excellence, innovation, and nationwide reach aligns perfectly with DP World PGTI’s goal to elevate professional golf in India and provide greater opportunities for our players.”
In a sport where every stroke counts and every partnership drives distance, Axis Bank isn’t just backing golfers, it’s investing in the fairway to future, turning India’s greens into a stage where precision meets passion and every drive has the power to inspire.
