Financial Data and Key Metrics Changes - The company's like-for-like revenue, less pass-through costs, fell by 5.4% for the full year, slightly better than the guidance of a 5.5%-6% decline, with a Q4 decline of 6.9% [9][10] - Headline operating margin was 13%, down 180 basis points year-on-year on a like-for-like basis [9][10] - Fully diluted EPS decreased by 28.4% year-over-year to 63.2 pence, impacted by reduced operating margin and a higher effective tax rate [10][17] - Adjusted operating cash flow before working capital was GBP 1.2 billion, down from GBP 1.3 billion in 2024 [10][19] - Net debt increased to GBP 2.2 billion from GBP 1.7 billion in 2024, with an average adjusted net debt to headline EBITDA ratio of 2.2 times, up from 1.8 times in 2024 [18][22] Business Line Data and Key Metrics Changes - The major negative impacts for the year were driven by gross client losses, particularly in media, with significant deterioration in the U.S. and U.K. markets, and sectors like CPG and TME [11][12] - New business wins in Q4 included notable clients such as Reckitt, Henkel, and the U.K. government, but the overall level of in-year wins was lower than expected [12][13] - Existing clients exhibited cautious spending, particularly in CPG, auto, and tech sectors, impacting overall performance [14] Market Data and Key Metrics Changes - Industry estimates indicated a double-digit decline in global pitch activity for the year, affecting new business opportunities [12] - The company noted that the overall net new business headwind is expected to sustain into the first half of 2026 [13] Company Strategy and Development Direction - The company aims to embrace a unified growth strategy, focusing on becoming a simpler, more integrated organization with a strong emphasis on client success [6][8] - The new strategy, termed Elevate28, includes stabilizing the business, returning to growth by 2027, and achieving gross cost savings of GBP 500 million over three years [8][36] - The company is positioning WPP Open as a competitive advantage, integrating capabilities across marketing workflows to enhance client service [34][61] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing performance in core metrics and emphasized the need for transformation to meet evolving client needs [29][30] - There is optimism regarding the potential for growth, driven by a talented workforce and strategic investments in technology [34][35] - The company recognizes the transformative impact of AI on the industry and aims to leverage it for competitive advantage [46][59] Other Important Information - The board recommended a final dividend of 7.5 pence, totaling 15 pence for 2025, reflecting a commitment to maintaining shareholder returns despite a reduction year-on-year [17][18] - The company completed a successful EUR 1 billion bond issue in December 2025, enhancing liquidity and financial stability [23] Q&A Session Summary Question: What are the expectations for new business growth in 2026? - Management expects like-for-like revenue to decline mid-to-high single digits in the first half of 2026, with an improving trajectory in the second half [25] Question: How will the company address the challenges faced in 2025? - The company plans to implement cost actions and invest in WPP Open and AI to stabilize and improve performance [26] Question: What is the outlook for cash flow in 2026? - Anticipated adjusted operating cash flow before working capital is projected to be GBP 800 million-GBP 900 million, including restructuring charges [27]

Financial Data and Key Metrics Changes - The company's like-for-like revenue, less pass-through costs, fell by 5.4% for the full year, slightly better than the guidance of a 5.5%-6% decline, with a Q4 decline of 6.9% [9][10] - Headline operating margin was 13%, down 180 basis points year-on-year on a like-for-like basis [9][10] - Fully diluted EPS decreased by 28.4% year-over-year to 63.2 pence, impacted by reduced operating margin and a higher effective tax rate [10][16] - Adjusted operating cash flow before working capital was GBP 1.2 billion, down from GBP 1.3 billion in 2024 [10][18] - Reported revenue less pass-through costs was GBP 10.2 billion, a decrease of 10.4% year-on-year [15][16] Business Line Data and Key Metrics Changes - Major negative impacts were noted in media, particularly in the U.S. and U.K., driven by gross client losses [11][12] - New business wins in 2024 and 2025 contributed positively but were lower than expected, with industry estimates of global pitch activity down double digits [12][13] - Existing client spending was characterized as cautious, particularly in CPG, auto, and tech sectors, heavily impacting Ogilvy [13][14] Market Data and Key Metrics Changes - The company experienced a deterioration in client assignment losses and spending cuts, particularly in the U.S. and U.K. markets [11][12] - The overall net new business headwind is expected to sustain into the first half of 2026, with a significant drag from client losses [12][23] Company Strategy and Development Direction - The company aims to embrace a unified growth strategy, focusing on becoming a simpler, more integrated organization [6][8] - The new strategy, called Elevate28, emphasizes stabilizing the business, returning to growth by 2027, and accelerating growth from 2028 onwards [8][34] - Key objectives include driving superior growth for clients, leveraging the WPP Open platform for competitive advantage, and creating firm financial foundations [33][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing performance on core metrics and emphasized the need for change [28][30] - There is optimism about the potential for recovery and growth, driven by a commitment to client success and the integration of AI into operations [30][32] - The company recognizes the transformative impact of AI on the marketing landscape and aims to position itself as a trusted partner for growth and transformation [42][48] Other Important Information - The company has a stable dividend policy, with a total dividend of 15 pence for 2025, despite a reduction year-on-year [16][17] - The company ended 2025 with net debt of GBP 2.2 billion, up from GBP 1.7 billion in 2024, with an average adjusted net debt to headline EBITDA ratio of 2.2 times [18][21] - Fitch Ratings assigned WPP a BBB rating with a stable outlook, reinforcing its investment-grade balance sheet [22] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company anticipates like-for-like revenue, less pass-through costs, to decline mid-to-high single digits in the first half of 2026, with an improving trajectory in the second half [24][25] Question: How will the new business impact the overall performance? - New business performance in Q4 was encouraging, and while it will take time to ramp up, the company expects progressively improving impacts from net new business throughout 2026 [12][24] Question: What are the key components of the Elevate28 strategy? - The strategy focuses on stabilizing the business, returning to growth by 2027, and achieving gross cost savings of GBP 500 million over three years [34][54]

Financial Data and Key Metrics Changes - WPP's like-for-like revenue, less pass-through costs, fell by 5.4% for the full year, slightly better than the guidance of a 5.5%-6% decline, with a Q4 decline of 6.9% [7][8] - The headline operating margin was 13%, down 180 basis points year-on-year on a like-for-like basis [8] - Fully diluted EPS was 63.2 pence, a decrease of 28.4% year-over-year, impacted by reduced operating margin and a higher effective tax rate [9][15] - Adjusted operating cash flow before working capital was GBP 1.2 billion, down from GBP 1.3 billion in 2024 [9][17] Business Line Data and Key Metrics Changes - Major negative impacts included gross client losses, particularly in media, with significant deterioration in the U.S. and U.K. markets, and in the CPG and TME sectors [10][11] - New business wins in 2024 and 2025 contributed positively but were lower than expected, with industry estimates of global pitch activity down double digits [11][12] - Existing client spending was characterized by cautiousness and volatility, heavily impacting sectors like CPG, auto, and tech [12] Market Data and Key Metrics Changes - The company experienced a decline in net sales performance, with a notable impact from client assignment losses and spending cuts [10] - The overall net new business headwind is expected to sustain into the first half of 2026, with a projected drag of 500-600 basis points from client losses [21] Company Strategy and Development Direction - WPP aims to embrace a unified growth strategy, focusing on becoming a simpler, more integrated company with a strong emphasis on client success [4][6] - The new strategy, named Elevate28, includes stabilizing the business, returning to growth by 2027, and accelerating growth from 2028 onwards [33][52] - Key objectives include leveraging the WPP Open platform for competitive advantage and creating firm financial foundations for the future [31][52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing performance on core metrics and emphasized the need for change, driven by client feedback highlighting complexity and siloed operations [27][28] - There is optimism about the potential for growth, with a focus on adapting to the evolving needs of clients and the rapid changes in the marketing landscape due to AI [30][34] - The company anticipates a progressively improving impact from net new business through 2026, despite initial challenges [22][24] Other Important Information - The board recommended a final dividend of 7.5 pence, totaling 15 pence for 2025, reflecting a commitment to maintaining shareholder returns [15][16] - WPP's average adjusted net debt to headline EBITDA ratio increased to 2.2 times, up from 1.8 times in 2024, indicating a need for careful financial management [19] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company expects like-for-like revenue, less pass-through costs, to decline in the mid-to-high single digits in the first half of 2026, with an improving trajectory in the second half [22][24] Question: How will the new strategy impact operating margins? - The company anticipates headline operating profit margins in the range of 12%-13%, benefiting from cost actions taken in 2025 and a lower impact from severance costs [24] Question: What is the outlook for cash flow in 2026? - Adjusted operating cash flow before working capital is expected to be between GBP 800 million and GBP 900 million, including anticipated cash restructuring charges [25]

Core Insights - The demand for integrated services across the entire marketing chain is increasingly prominent as technology and market environments evolve [1] - WPP Media leverages WPP Group's resources and technology, particularly the AI-driven WPP Open system, to create a seamless connection between creativity, production, data, e-commerce, and personalized media placement [3] - The introduction of the Open Intelligence model by WPP Media addresses the challenges posed by over-reliance on single ID-based data sources, enhancing the ability to reach diverse audiences with greater relevance and precision [5][6] Industry Trends - The marketing landscape is undergoing significant changes, with the acceleration of AIGC and AI Agents reshaping industry rules and presenting unprecedented challenges for marketers [8] - The past two years have seen more profound changes than the previous decade, particularly evident in the Chinese market [8] - WPP Media's continuous exploration of integrated services and advanced technologies aims to overcome ID limitations, enhancing brand marketing effectiveness and consumer experience [8]

Financial Data and Key Metrics Changes - The company reported a first half organic net sales growth of -4.3%, with the second quarter down 5.8% [4][11] - Headline operating margin was 8.2%, down by 290 basis points year-on-year, impacted by severance costs [5][20] - Headline diluted EPS of 20p is down 35% on a reported basis, reflecting a decline in profitability [22] Business Line Data and Key Metrics Changes - Global integrated agencies saw a like-for-like decline of 6% in the second quarter, with WPP Media down 4.7% [12][13] - Other global integrated creative agencies fell 7.2% in the second quarter, with Ogilvy experiencing high single-digit declines [13][14] - Specialist agencies saw a like-for-like decline of 1.9% in the quarter, with CMI showing double-digit growth [15] Market Data and Key Metrics Changes - North America declined by 4.6% in the second quarter, while the UK saw a decline of 6.5% [16][17] - Western Continental Europe experienced a like-for-like decline of 6.5%, and the rest of the world declined 6.8%, with China down 15.9% [17] - The CPG sector saw a decline of 8.3% in the second quarter, while healthcare remained broadly flat [18] Company Strategy and Development Direction - The company is focusing on three strategic priorities: driving adoption of WPP Open, returning WPP Media to growth, and winning new business [5][8] - Significant actions have been taken towards strategic goals, including new product releases and partnerships [6][9] - The transformation of WPP Media aims to create a more client-centric organization and leverage AI technology [32][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment and slower new business conditions impacting performance [4][10] - There is confidence in the company's ability to adapt to an AI-driven future and leverage technology for competitive advantage [45][56] - The outlook remains cautious, with expectations for improved margins in the second half of the year [20][28] Other Important Information - The Board declared an interim dividend of 7.5p, balancing shareholder returns with financial flexibility [23] - The company has reduced headcount by 3.7% since the start of the year, aligning with organic growth trends [5][20] - Total available liquidity across the group stood at £3 billion as of June 30, 2025 [27] Q&A Session Summary Question: What are you seeing in terms of pricing in this challenging macro environment? - The industry remains competitive, with pricing pressures being addressed through client wins and expanded scopes [64] Question: Can you tell us more about your product offering in influencer marketing? - The company is confident in its influencer marketing capabilities and does not see a need for further acquisitions [66] Question: Can you elaborate on the one-off factors that negatively impacted H1? - The one-off factors were related to contractual obligations in the media business in Western Europe and are not expected to repeat [68] Question: Why was Hogarth flat in the first half? - Hogarth's performance was impacted by timing issues on product launches rather than AI effects [75] Question: Can you clarify your data advantage over competitors? - The company incorporates data into performance models differently, utilizing a broader range of data sources and technologies like federated learning [80]

Financial Data and Key Metrics Changes - The company reported a first half organic net sales growth of -4.3%, with the second quarter down 5.8% [3][10] - Headline operating margin was 8.2%, down by 290 basis points on a like-for-like basis, impacted by severance costs [4][11] - Headline diluted EPS of 20p is down 35% on a reported basis, reflecting a decline in profitability [22] Business Line Data and Key Metrics Changes - Global integrated agencies saw a like-for-like decline of 6% in the second quarter, with WPP Media down 4.7% [12] - Other global integrated creative agencies fell 7.2% in the second quarter, with Ogilvy experiencing high single-digit declines [12] - PR services declined by 7.8% in the second quarter, reflecting a challenging environment for client discretionary spending [13] Market Data and Key Metrics Changes - North America declined by 4.6% in the second quarter, while the UK saw a decline of 6.5% [14] - Western Continental Europe experienced a like-for-like decline of 6.5%, influenced by one-off factors [15] - The rest of the world declined 6.8% in the second quarter, with China facing significant pressures, declining 15.9% [15] Company Strategy and Development Direction - The company is focusing on three strategic priorities: driving adoption of WPP Open, returning WPP Media to growth, and winning new business [4][5] - Significant actions have been taken towards strategic goals, including new product releases and partnerships [5][6] - The transformation of WPP Media aims to integrate data and technology to enhance client offerings and operational efficiency [29][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment and slower new business conditions impacting performance [3][4] - There is optimism about improved momentum in new business in North America despite current challenges [13] - The company is well-prepared for an AI-powered future, emphasizing the importance of creativity and strategic judgment [45][47] Other Important Information - The Board declared an interim dividend of 7.5p, balancing shareholder returns with financial flexibility [23] - The company expects annualized gross savings of at least GBP 150 million from restructuring actions [18] - Total available liquidity across the group stood at GBP 3 billion as of June 30, 2025 [27] Q&A Session Summary Question: What are you seeing in terms of pricing in this challenging macro environment? - The industry remains competitive, with pricing pressures noted, but winning clients can help address these issues [66] Question: Can you tell us more about your product offering in influencer marketing? - The company is confident in its influencer marketing capabilities and does not see a need for further acquisitions [68] Question: Can you elaborate on the one-off factors that negatively impacted H1? - The one-off factors were related to contractual obligations in the media business in Western Europe and are not expected to repeat [71] Question: Why was Hogarth flat in the first half? - Hogarth faced timing issues on product launches rather than an AI impact, and AI is expected to be a growth opportunity [80] Question: Can you clarify the data comment regarding having more data than competitors? - The company incorporates data into performance models differently, utilizing a broader range of data sources beyond traditional CRM [84]

Core Insights - Criteo has announced a partnership with WPP Media to enhance commerce intelligence for Connected TV (CTV) advertising, leveraging Criteo's real-time commerce signals and WPP Media's Open Intelligence to improve advertiser reach and effectiveness [1][4][7] Group 1: Partnership Overview - The collaboration aims to provide advertisers with curated audiences based on high-fidelity commerce signals, which can be activated across any Demand-side Platform (DSP) [2] - Criteo's Commerce Grid Supply-side Platform (SSP) enables advertisers to implement commerce-first CTV strategies, linking ad exposure to measurable outcomes such as foot traffic and sales [3][5] Group 2: Market Impact - Criteo's real-time commerce signals are derived from 17,000 e-commerce sites and 200 global retail partners, representing over $1 trillion in annual e-commerce sales, which helps create high-intent shopper audiences [5] - The partnership is designed to allow brands to access these high-intent segments across their preferred DSP partners, streamlining the activation process [5][6] Group 3: Strategic Goals - The collaboration seeks to merge traditional brand marketing goals with emerging metrics of performance-driven commerce media, facilitating full-funnel strategies in CTV [4][7] - The initiative emphasizes not just improved targeting but also the ability for brands to reach broad audiences with precision and measurability akin to digital advertising [7]

Core Insights - WPP has rebranded its media business from GroupM to WPP Media, marking a significant transformation phase for the advertising giant [2] - The rebranding is part of the Vision30 strategy, focusing on integrated collaboration, platform technology, talent evolution, and innovation [2][3] - WPP Media aims to enhance client service by reducing administrative burdens on agency brands, allowing them to focus more on client collaboration [2] Organizational Structure - WPP Media will have two main roles: client teams directly serving clients and support teams assisting them [3] - The organization will streamline backend functions to improve responsiveness and operational efficiency [3] - The three major agency brands—EssenceMediacom, Mindshare, and Wavemaker—will retain their unique identities while being unified under WPP Media's management [3] Technology and AI Integration - The WPP Open platform is a key tool for implementing the transformation, enhancing collaboration and integrating systems within the organization [3][4] - AI technology plays a crucial role in the transformation, with the introduction of the "Open Intelligence" marketing model, which focuses on multi-source data integration and AI predictive modeling [4][5] - Open Intelligence aims to shift the focus from data collection to strategic insights, allowing teams to concentrate on thinking and insights rather than data retrieval [4][5] Market Trends and Strategy - The industry is witnessing a shift towards a balanced approach between brand building and performance, moving from an 80% focus on performance during the pandemic back to a healthier 50:50 balance [6] - WPP Media is transitioning from being an execution intermediary to a strategic consultant, emphasizing the importance of understanding where and how much to invest for optimal returns [6] - The company aims to leverage AI as a productivity tool rather than a mere presentation gimmick, reflecting a commitment to practical applications in the industry [6]