WPP Reports 71% Profit Drop, Halves Interim Dividend

WPP, the British advertising giant, reported a sharp decline in its first-half profits and revenues amid a challenging market environment, leading to a halving of its interim dividend to 7.5 pence per share. The company experienced a 7.8% drop in revenue to £6.66 billion and a 71% plunge in pre-tax profits, with significant declines across key regions including China, the UK, and Western Europe, while India remained flat. WPP's media division, particularly its programmatic advertising arm, saw revenue declines as the company invests heavily in repositioning and adapting to industry shifts driven by AI and changing consumer trends. CEO Mark Read highlighted pressures on client spending, a slower new business environment, and the impact of tariffs causing companies to reduce advertising budgets, which contributed to fewer pitches and lost clients such as Mars and Paramount. New CEO Cindy Rose is set to lead a strategic review and reassessment of capital allocation to navigate these headwinds and reposition the company. Despite the difficulties, WPP is focusing on cost savings, data and technology enhancements, and maintaining stability with top clients, while projecting continued revenue declines and margin pressure into fiscal 2025.