WPP Scangroup PLC has released its unaudited half-year financial results for the period ending June 30, 2025, showing resilience despite a challenging macroeconomic environment and reduced client spending.
The company said the first half of 2025 was marked by a challenging macroeconomic environment, with high inflation and currency volatility impacting client budgets and project timelines.
“Our gross profit declined by 16%, driven by reductions in client spend and trading pressures across key markets. Despite this, we demonstrated resilience by reducing operating and administrative expenses by KES 32 million,” noted the Board of Directors.
Financial Highlights (KES Millions)
| Metric | H1 2025 | H1 2024 | Change (%) |
|---|---|---|---|
| Revenue | 1,278.6 | 1,413.6 | ↓ 9.5% |
| Operating and Admin Expenses | (1,278.6) | (1,413.6) | ↓ 9.5% |
| Profit Before Tax | 158.6 | 173.2 | ↓ 8.4% |
| Profit After Tax | 112.6 | 121.2 | ↓ 7.1% |
| Earnings Per Share (Basic & Diluted) | 0.28 | 0.30 | ↓ 6.7% |
| Total Assets | 6,426.2 | 6,538.1 | ↓ 1.7% |
| Cash and Cash Equivalents | 3,825.3 | 3,858.2 | ↓ 0.9% |
“Despite these headwinds, we remained profitable and sustained a strong cash position, demonstrating the resilience of our business model and disciplined cost management.”
“The Kenyan shilling’s stability in H1 2025 significantly reduced foreign exchange pressures, limiting our net forex loss to just KES 6 million—down from KES 250 million last year,” the Board highlighted.
Strategic and Operational Updates
- Revenue Decline: The 9.5% drop in revenue reflects cautious client spending and delayed project rollouts.
- Cost Management: Operating expenses were tightly managed, aligning with revenue contraction.
- Cash Resilience: The group retained over KES 3.8 billion in cash, underscoring its financial stability.
- Dividend Outlook: No interim dividend was declared, as the Board opted to prioritise reinvestment and maintain strategic flexibility.
“We continue to focus on operational efficiency and strategic agility to navigate market uncertainties and deliver long-term value to our stakeholders.”
“We are actively advancing our strategic priorities through our Digital, Technology, and Influence Centers of Excellence. These initiatives are foundational to our operational excellence and future performance,” the Board stated.
“Our immediate priorities are maintaining operational stability while making selective investments in content, data, and technology. These areas are critical to accelerating sustainable growth,” added the Board.
“Our foundational strengths put us in a strong position to evolve ahead of the market. We’re navigating short-term risks while preparing the organisation for future success,” the Board concluded.
“Our management focus for the remainder of the year is to stabilise the client portfolio and prepare for growth in a cost-conscious manner.”
