WPP, one of the world’s largest advertising and communications firms, reported a modest decline in revenue for the first quarter of 2025 as macroeconomic headwinds, client budget caution, and the ongoing restructuring of its core operations weighed on performance. The company, however, reaffirmed its full-year guidance and touted progress in new business wins and technological transformation.
Revenue for the quarter came in at £3.24 billion, down 5 percent on a reported basis and 0.7 percent like-for-like, which strips out the effects of currency and acquisitions. Revenue less pass-through costs fell 2.7 percent like-for-like to £2.48 billion.
Mark Read, WPP’s chief executive, characterized the results as “in line with expectations” and emphasized that the company was making headway on its longer-term priorities, including artificial intelligence, operational efficiency, and simplification across its agency network.
“With the internal focus of integration behind them, VML and Burson are seeing renewed momentum in new business,” Read said in a statement, citing recent wins from clients such as Heineken, Generali and Levi Strauss & Co.
WPP has faced a challenging advertising environment as global economic uncertainty and shifting client priorities continue to reshape spending. While the company is not directly impacted by international tariffs, Read acknowledged that several of WPP’s major clients are, with potential implications for future marketing budgets.
“While WPP is not itself directly affected by tariffs, they will impact a number of our clients as well as the broader economy,” Mr. Read said. “At this point we have not seen any significant change in client spending.”
Performance across WPP’s portfolio was uneven. Its media division, GroupM, reported a like-for-like decline of 0.9 percent in revenue less pass-through costs. Other integrated agencies were down 4.4 percent. Public relations declined 6.6 percent, while specialist agencies saw modest growth of 1.2 percent.
Regionally, North America held steady with a slight 0.1 percent decline, but other key markets fared worse: the United Kingdom was down 5.5 percent, Western Continental Europe fell 4.5 percent, and the Rest of World segment dropped 3.8 percent. Notably, India grew 5.5 percent, though that was more than offset by a sharp 17.4 percent drop in China.
Despite overall softness, WPP’s top 25 clients grew 2.5 percent, driven by resilience in consumer packaged goods and technology sectors, along with stabilizing healthcare demand. Retail, telecom, and travel clients, however, scaled back.
WPP continues to double down on artificial intelligence, data, and proprietary technology as it seeks to modernize its offerings and win new business. The company increased its annual AI investment target to £300 million, up from £250 million in 2024, and reported that 60 percent of client-facing staff now use its WPP Open platform, up from 33,000 users in December.
GroupM, which has been under pressure due to past client losses, is undergoing a simplification effort led by Brian Lesser. That transformation includes the adoption of Open Media Studio and the integration of InfoSum, a privacy-centric data platform acquired earlier this year.
WPP said the early phases of this overhaul are expected to weigh on margins in the first half of the year but will likely balance out over the full year.
“We are creating the next generation of AI-enhanced data and marketing solutions for clients, delivered through the industry’s most powerful and secure infrastructure,” the company said.
WPP maintained its forecast for full-year like-for-like revenue less pass-through costs to be flat to down 2 percent, with an operating margin expected to remain stable, excluding currency impacts.
The company is navigating what Read described as “elevated macro uncertainty,” but remains focused on cost discipline and maintaining strategic investment levels—particularly in AI, data integration, and platform productivity tools.
“As ever, we remain agile and vigilant,” Read said, “and will continue to be disciplined on how we are managing our cost base.”