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.
MAM
DB Group names Abhay Dubey as chief brand marketing
Seasoned marketer brings regional muscle and launch savvy to DB
LUCKNOW: Dainik Bhaskar Group has appointed Abhay Dubey as chief brand marketing, strengthening its leadership bench as the media major sharpens its focus on brand-led growth.
Dubey steps into the role after a high-impact stint as regional marketing manager at Reliance Broadcast Network, where he led data-driven regional campaigns and rolled out new initiatives from concept to completion. Based in Lucknow, he steered end-to-end account marketing, orchestrated launch events, and fine-tuned go-to-market strategies with a sharp eye on budgets and brand visibility.
Before that, he served as area marketing manager at Mahindra Holidays & Resorts India Limited, handling business development, media buying and integrated branding campaigns across Uttar Pradesh. His remit included planning new service launches and working closely with creative agencies, media owners and government departments.
Dubey also held the position of brand manager at EM3 Agriservices Pvt. Ltd., where he drove product launches, demand generation and stakeholder engagement. Earlier in his career, he was head of marketing at Saffron Communications Pvt. Ltd., overseeing integrated campaigns across sectors, and began his journey at Jagran Engage, building experience in advertising and lead generation.
With expertise spanning digital marketing, brand management, demand generation and below-the-line advertising, Dubey brings both strategic planning skills and hands-on execution experience to the table. His track record suggests a marketer who is as comfortable crunching numbers as he is crafting narratives.
At DB Group, he is expected to shape sharper brand strategies, amplify market presence and ensure campaigns that do not just make noise, but make sense.
