The numbers
–8.4% – revenue decline for the quarter, down 3.5% year-on-year on a like-for-like basis
–11.1% – decline in revenue less-pass-through costs down overall and 5.9% on a like-for-like basis
–5.5 – 6.0% – How much WPP now expects revenue, less pass-through costs, to decline in 2025. This is a drop from its previous forecast, which predicted a decline between 3 to 5%.
–$4.3 billion (£3.25 billion) – revenue less-pass-through costs for the quarter.
Watercooler talk
WPP has reported its first earnings under the leadership of new chief executive (CEO) Cindy Rose, who has launched a strategic review aimed at helping the embattled holdco return to growth.
As revenue dropped 8.4%, the business has downgraded its full-year guidance for the second time this year, issuing a fresh profit warning.
In her first public statement to investors and journalists, Rose said WPP’s performance was “unacceptable.”
She said the business was taking action to improve this, including making investments in AI and simplifying its operational structure.
Former Microsoft exec Rose took over from longtime WPP boss Mark Read in September.
The business has faced a challenging first half of the year thanks to client losses on the media side, including Mars, which it lost to French rival Publicis Groupe. Before Rose joined, it also undertook a restructuring of its WPP Media division, which resulted in significant layoffs.
Revenues at WPP Media were down 5.7%, while the North America market, which is about to face even stiffer competition as Omnicom Group prepares to close its acquisition of IPG, dropped 6%.
In her first two months as CEO, Rose has focused on building up WPP’s AI arsenal, including inking a $400 million deal with Google and launching WPP Open Pro, an AI platform marketers can use to build campaigns, develop creative assets, and activate on their own.
Key quote
“There is a lot to do, and it will take time to see the impact, but in my first 60 days, we are already moving at a pace with some initiatives already announced and more to come,” said Rose.