Connect with us

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.

Published

on

MUMBAIIt 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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

MAM

BLS International launches #VisaReady campaign to guide applicants

Initiative targets visa myths, delays and rejections with practical guidance

Published

on

MUMBAI: Visa woes may soon meet their match because paperwork, it seems, is finally getting a user manual. BLS International has rolled out a new awareness drive, #VisaReadyWithBLSInternational, aimed at simplifying the often confusing visa application process and reducing delays caused by misinformation and incomplete documentation. The campaign, led across social media platforms, zeroes in on a long-standing pain point for travellers: lack of clarity around procedures, timelines and requirements. By offering step-by-step guidance, documentation checklists and clear Dos and Don’ts, the initiative attempts to turn what is typically a stressful process into a more predictable one.

At its core, the campaign also seeks to bust common myths that frequently derail applications issues that often lead to avoidable rejections or last-minute complications. The idea is to equip applicants with practical, actionable insights so they can plan better and submit stronger applications within expected timelines.

The push will not remain limited to digital channels. BLS International plans to extend the initiative across its Visa Application Centres globally, reinforcing awareness at key touchpoints where applicants engage with the process.

Advertisement

BLS International joint managing director Shikhar Aggarwal framed the campaign as more than a communication exercise, emphasising the company’s attempt to embed guidance and preparedness into every stage of the applicant journey.

Operating in over 70 countries and working with more than 46 client governments including embassies, consulates and diplomatic missions, the company has built a sizeable footprint in visa and consular services. With this campaign, it is now leaning into education as much as execution, signalling that in the world of visas, clarity might just be the new currency.

Advertisement
Continue Reading

Advertisement News18
Advertisement
Advertisement
Advertisement
Advertisement Whtasapp
Advertisement Year Enders

Indian Television Dot Com Pvt Ltd

Signup for news and special offers!

Copyright © 2026 Indian Television Dot Com PVT LTD