TLDR
WPP's Australian business shrank 4.8% like-for-like in the September quarter, more than double its 1.8% fall in the June quarter, according to AdNews, even as WPP Media won Asahi, Michael Hill and BYD. Group revenue less pass-through costs fell 2.1% and WPP kept its full-year guidance.
KEY TAKEAWAYS
Australia falls faster
WPP's Australian business shrank 4.8% like-for-like in the September quarter, a steeper fall than the 1.8% decline in the June quarter, AdNews reported from the company's trading update. It came despite a run of wins for WPP Media in Australia, including Asahi, Michael Hill and BYD, and retentions of L'Oreal and Uber.[2]
The Australian result was weaker than the group's. WPP's revenue less pass-through costs, the measure of what it earns after costs billed on to clients, fell 2.1% like-for-like to £2,411 million. Reported revenue rose 0.5% to £3,274 million, and year-to-date revenue less pass-through costs is down 3.9% like-for-like.[1] Asia-Pacific as a whole fell 4.3%, dragged by an 8.7% fall in China.[2]
Media recovers, creative slips
WPP Media returned to growth, up 0.3% after a 2.8% fall in the June quarter, helped by spending from existing clients and new account wins. WPP Creative fell 5.1%, with the decline concentrated in its integrated creative agencies. Every region fell, and revenue from WPP's top 25 clients dropped 2.7%.[2]
By sector, consumer packaged goods, WPP's biggest at 27% of revenue less pass-through costs, fell 6.4%. Telecom, media and entertainment fell 15.7% and financial services 8.9%, while automotive grew 6.7%.[2]
Guidance held
"We are on track to deliver phase one of Elevate28: stabilising our business performance and laying the foundations for a simpler, more unified WPP," said chief executive Cindy Rose. WPP expects revenue less pass-through costs to fall by low to mid-single digits in the second half, with the fourth quarter towards the better end, and a full-year headline operating margin of 12% to 13%.[1]
WPP is targeting £250 million in gross run-rate savings by the end of the year and a return to growth during 2027. During the quarter it kept its global media partnership with Coca-Cola.[2] In Australia, WPP Media kept Coca-Cola's Australian and New Zealand media account earlier this month.
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James Dore is founder and editor of Prompt the Market and Strategy Director at Bushnote, a Sydney strategy, SEO and AI search agency. He has a background in strategy, media and financial services, and led consumer product marketing at MONEYME. He writes on AI search, answer engines, technology policy and media economics.
