WPP today reported an organic net revenue decline of 0.5% for Q2 and a decline of 3.6% for the first half of the year. The firm also announced the sale of a majority stake — just over 50% — in strategic communications and advisory firm FGS Global to private equity firm KKR for $775 million.  

Talks about a possible sale of FGS were first reported in June. KKR had purchased a minority stake in the unit a few years ago. 

WPP downgraded full-year 2024 growth guidance, now projecting an organic decline of between 1% and flat. Earlier guidance was flat to +1%.

The firm noted “sequential” improvement organically from Q1, when the revenue decline was 1.6%. 

By region in Q2, organic growth was +2.0% for North America and +0.3% for Western Continental Europe, offset by the UK's -5.3% and Rest of World -2.2%, with growth in India at +9.1% offset by a decline in China which fell -24.2%. 

The company’s Global Integrated Agencies division posted a decline of 0.6% in Q2 with media unit GroupM growing 1.4%, offset by a 2.4% decline at the integrated creative agencies. 

Top-ten clients grew 2.5% in H1.

The firm reported that its CPG, telecom/media/entertainment and automotive client sectors grew “well” in Q2. The technology client sector was reported to be “stabilizing,” with a decline of 1.0% in Q2, an improvement from Q1’s -9.0%. The Healthcare and retail sectors were impacted by 2023 client losses.  

WPP said it made strong progress on strategic initiatives with new products and solutions launched within  AI-powered marketing operating system WPP Open and Burson, GroupM and VML on track to deliver targeted savings. 

WPP CEO Mark Read noted “continued growth in GroupM, Ogilvy and Hogarth and sequential improvement at Burson, VML and our Specialist Agencies. Importantly, we also saw North America return to growth in the second quarter. That said, we have seen pressure in China and in our project-related businesses which, together with an uncertain macro environment, has led us to moderate our expectations for the full-year.” 

As for the sale of FGS Global Read said it was “an excellent outcome less than four years after its creation from three separate businesses within WPP. It will allow us to focus and invest in our core creative transformation offer while significantly strengthening our financial position.”  

FGS Global was formed in 2021 when WPP merged Finsbury Glover Hering and Sard Verbinnen & Co. Practice areas include corporate reputation, crisis management, government affairs/advocacy and transaction and financial communications.