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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.
MAM
8PM Packaged Drinking Water named Lead Trouser Sponsor for Sunrisers Hyderabad
Brand partners with IPL team for 2026 season with campaign ‘Rise in Orange, Celebrate with Black’.
MUMBAI: 8PM Packaged Drinking Water has found a clever way to stay in the game by hitching its wagon to one of cricket’s most exciting teams. The brand from Radico Khaitan Limited has announced its association with Sunrisers Hyderabad as the Lead Trouser Sponsor for India’s Premier Cricket League 2026. The partnership will see 8PM Packaged Drinking Water gain prominent visibility during the high-energy tournament.
To mark the collaboration, the brand has launched the campaign thought “Rise in Orange, Celebrate with Black.” The idea cleverly links the on-field intensity of Sunrisers Hyderabad’s iconic orange jersey with the off-field celebrations powered by 8PM Premium Black Packaged Drinking Water.
Radico Khaitan Limited chief marketing officer Kunal Madan said, “We are delighted to be associated with Sunrisers Hyderabad for the 2026 season. With the league’s unmatched reach and the team’s strong fan following, this is a great opportunity to connect meaningfully with consumers across the country.”
Sunrisers Hyderabad enters the season with a formidable lineup featuring players such as Abhishek Sharma, Ishan Kishan, Travis Head, and Pat Cummins, making it one of the most watched teams this year.
A spokesperson from Sunrisers Hyderabad added, “We are pleased to welcome 8PM Packaged Drinking Water to the Sunrisers family. This association brings together shared values of energy, resilience, and excellence.”
The partnership underscores Radico Khaitan’s strategy of aligning with marquee sporting platforms to build contemporary, consumer-centric brands. By tapping into the emotional connect and massive viewership of the league, 8PM aims to deepen engagement and strengthen brand affinity during the cricket season.
In the fiercely competitive world of Indian cricket sponsorships, 8PM has chosen to play it smart, pairing the thrill of orange with the cool refreshment of black. As Sunrisers Hyderabad prepare for another exciting season, the brand is set to ride the wave of passion, performance, and celebration.
