Advertising giant WPP returned to revenue growth in the third quarter as chief executive Cindy Rose’s turnaround plan began to show signs of progress, although its creative business continued to struggle.

The London-listed group reported revenue of £3.27bn in the three months to September, up 0.5 per cent from a year earlier, following a prolonged slump in sales.

However, revenue excluding pass-through costs, a closely watched measure of underlying performance, fell 2.1 per cent to £2.41bn.

The decline marked an improvement from the second quarter, when the measure fell 2.8 per cent, although WPP’s creative agencies continued to weigh on the business.

WPP Media returned to growth for the first time in the turnaround, edging up 0.3 per cent, while its production arm grew 2.5 per cent. Creative revenue, meanwhile, fell 5.1 per cent as clients continued to rein in spending.

The group maintained its full-year outlook, forecasting a low to mid-single-digit decline in underlying revenue during the second half and an operating margin of between 12 and 13 per cent.

Turnaround begins

Rose, who took the helm last year after joining from Microsoft, has been tasked with reviving the advertising group following years of declining performance, client losses and mounting competition from rivals.

Her three-year turnaround strategy – dubbed Elevate28 – aims to simplify WPP’s sprawling network of agencies, cut costs and return the business to growth in 2027.

“We are on track to deliver phase one of Elevate28: stabilising our business performance and laying the foundations for a simpler, more unified WPP”, Rose said.

“Our third quarter results show further sequential improvement in LFL growth, in line with our expectations.”

The group secured a string of major client wins and renewals during the quarter, including Coca-Cola, Doordash, Nestlé, Uber and Google’s self-driving car business Waymo.

Rose said demand remained healthy for WPP’s AI-powered advertising services, including its agentic marketing platform WPP Open, as the industry grapples with the growing influence of AI on creative production and media buying.

The company has also opened a new AI-enabled production facility in east London and expanded its data partnerships as it seeks to compete more effectively with tech companies entering the advertising market.

Cost cuts continue

WPP’s latest update follows a bruising first half in which the company cut another 1,267 jobs, bringing its workforce reduction over the preceding 12 months to 6.4 per cent.

The group has been shedding staff and simplifying its agency structure as part of plans to deliver £500m in cost savings by the end of 2028.

It expects to achieve £100m in savings this year, alongside approximately £250m in restructuring costs.

WPP also reiterated plans to generate at least £200m from asset disposals as it seeks to strengthen its balance sheet.

Its adjusted net debt stood at £3bn at the end of September, down from £3.6bn a year earlier.

Despite the improving quarterly performance, WPP remains under pressure to demonstrate that its restructuring can deliver sustained growth.

The company has lost its position as the world’s largest advertising holding group to France’s Publicis, while the rapid adoption of AI is forcing traditional agencies to rethink how they deliver services.

Rose said WPP was preparing for the next phase of its turnaround, with the aim of returning to organic growth during 2027.