WPP H1 Kazanç Görüşmelerinin Önemli Noktaları

WPP H1 Earnings Call Highlights

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Sun, August 9, 2026 at 8:03 PM GMT+3 7 min read

Key Points

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Revenue trends improved sequentially: WPP's like-for-like revenue less pass-through costs fell 4.7% in the first half of 2026, but the decline narrowed to 2.8% in the second quarter from 6.7% in the first quarter. Management expects a low- to mid-single-digit decline in the second half and still targets a return to growth in 2027.
Margins and balance-sheet measures strengthened: First-half headline operating profit rose to £398 million, with an 8.4% margin, while adjusted net debt declined £326 million year over year to £2.9 billion. WPP maintained its 12%-13% full-year margin guidance and £0.15-per-share dividend.
Restructuring and new-business momentum continued: WPP reported major integrated client wins, launched Enterprise Solutions and expanded AI and technology partnerships. The company remains on track for £500 million in annualized Elevate28 savings, alongside more than £200 million of expected 2026 disposal proceeds.

WPP (NYSE:WPP) reported a 4.7% like-for-like decline in revenue less pass-through costs for the first half of 2026, while management pointed to improving quarterly trends, new-business momentum and progress on its Elevate28 restructuring plan.

Chief Executive Officer Cindy Rose said the company is in the stabilization phase of its three-year strategy, which is intended to simplify WPP into a single company with four operating units: Creative, Media, Production and Enterprise Solutions. The company expects to return to growth during 2027, followed by an acceleration phase from 2028.

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"The headline is that we're on track with where we said we would be, stabilizing the business and delivering on our ambitions with clear evidence of progress across all leading indicators," Rose said.

Quarterly Revenue Trend Improved

Like-for-like revenue less pass-through costs declined 2.8% in the second quarter, improving from a 6.7% decline in the first quarter. Chief Financial Officer Joanne Wilson said the first-half result was consistent with WPP's prior guidance for a mid- to high-single-digit decline.

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WPP Media recorded a 2.8% decline in the second quarter, compared with an 8.3% decline in the first quarter. WPP Creative's revenue declined 4.9% in the quarter but also improved sequentially, according to Wilson. WPP Production continued to post positive growth, supported by new business wins.

By region, North America declined 4.3% in the second quarter, versus a 7.8% drop in the first quarter. EMEA declined 3% in the quarter, while Latin America grew 0.9% and Asia-Pacific grew 0.3%.

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China returned to growth, rising 2.6% in the first half and posting double-digit growth in the second quarter. Wilson said the quarterly performance included timing benefits and should not be expected to continue at that level in the second half, though WPP expects the market to continue stabilizing. India's second-quarter performance moderated due largely to the timing of events, with growth expected to resume in the second half.

WPP said auto and healthcare returned to growth in the second quarter. Consumer packaged goods declined 6%, while technology clients declined 8.9%, with both categories affected by assignment losses. The company's top 25 clients declined 3.2% in the second quarter; excluding assignment losses, that group returned to growth, Wilson said.

Profit, Cash Flow and Guidance

Headline operating profit was £398 million in the first half, producing an 8.4% margin, up 20 basis points from a year earlier. The improvement reflected cost savings and lower headline severance costs, partly offset by investments in growth initiatives and incentives.

Headline diluted earnings per share fell to £0.151 from £0.20 a year earlier. Wilson attributed the decrease mainly to a higher normalized headline effective tax rate and lower year-over-year profit.

Adjusted operating cash flow before working capital was £309 million in the first half, including £83 million of non-headline cash restructuring costs. Adjusted net debt stood at £2.9 billion at the end of June, down £326 million from a year earlier. WPP's average adjusted net debt was £3.3 billion.

The board declared an interim dividend of £0.075 per share, unchanged from the prior year. WPP continues to expect a full-year dividend of £0.15 per share.

For the second half, the company expects like-for-like revenue less pass-through costs to decline by the low to mid-single digits. It maintained full-year headline operating-margin guidance of 12% to 13%, although it expects second-half margin to decline by as much as 200 basis points year over year as investment in growth drivers and incentives increases.

Expected 2026 adjusted operating cash flow before working capital: £800 million to £900 million.
Expected adjusted operating cash flow before working capital, excluding restructuring costs: £1 billion to £1.1 billion.
Expected contribution from disposal-related activity to 2026 cash flow: at least £200 million.

New Business, Integration and Technology

Rose said WPP ranked first in J.P. Morgan's net new business rankings for the first half and for the nine months through the second quarter. The company cited wins including The Estée Lauder Companies, Jaguar Land Rover, Henkel, Just Eat, Bet365, Airbnb, SC Johnson, Wendy's, Heineken and Honda.

Management emphasized that recent wins have increasingly involved integrated mandates across multiple WPP capabilities. Rose cited Wendy's appointment of WPP Media as its U.S. media partner while it continues its creative relationship with VML, as well as consolidated assignments from Natura and Avon in Latin America and an EMEA Diet Coke assignment from Coca-Cola.

WPP also said it improved client retention in the first half, citing renewals involving Huawei in China, Tesco in the U.K., L'Oréal in Australia and New Zealand, Skechers across multiple markets, Reckitt in India and Toyota in Europe. The company plans to establish a client-success program focused on systems, processes and people to further improve retention and expand client relationships.

Rose said WPP Enterprise Solutions, launched to market on July 1, combines commerce, customer experience, CRM, content transformation and technology partnerships. The business is already working with clients including IKEA, Ford, L'Oréal and Nestlé, she said. WPP expects to begin separately reporting Enterprise Solutions net-sales performance from Jan. 1, 2027.

The company also highlighted expanded partnerships with Google, Adobe, Meta, AWS and Microsoft. These partnerships are being integrated into WPP Open, its marketing platform, which WPP said allows clients to use data and AI capabilities while retaining control of their underlying data within their own environments.

Cost Savings and Portfolio Actions

WPP reiterated its target of £500 million in gross annualized cost savings over three years under Elevate28, including £100 million of savings in 2026. Management said savings will be reinvested this year into growth areas including media and Enterprise Solutions.

The company completed more than 15 non-core asset disposals in the first half that are expected to generate more than £200 million of sales proceeds in 2026. Among them, WPP agreed to sell XTEL, a revenue-management and trade-promotion software provider owned through Kantar Holding, in a transaction expected to generate more than £100 million of value.

Wilson said WPP expects to continue simplifying its portfolio and could generate additional disposal proceeds in 2027. Proceeds are intended to improve financial flexibility, strengthen the balance sheet and support investment in growth.

About WPP (NYSE:WPP)

WPP plc (NYSE: WPP) is a British multinational advertising and public relations company headquartered in London, England. Recognized as one of the world's largest communications services groups, WPP provides a wide array of marketing, advertising, media investment management and data consultancy services. Through its integrated network of agencies—among them Ogilvy, Grey, GroupM and Wavemaker—the company delivers creative content, brand strategy, digital transformation and media planning solutions to clients across virtually every industry.

Established in 1971 by Martin Sorrell as Wire and Plastic Products, the firm underwent a strategic transformation in the 1980s, focusing on acquisitions that expanded its capabilities into advertising and communications.

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