WPP Australia and New Zealand Recorded $36 Million Loss
Creative agencies faced revenue declines as major account losses hit local operations.
Updated on Sept. 30, 2026 in Advertising
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WPP Australia and New Zealand reported a $36 million net loss for the fiscal year ended 31 December 2025 following a $60 million drop in revenue across its creative agencies. This downturn reflected a broader decline in total revenue, which fell 9% to $700 million.
Why it matters
The firm's profitability suffered as it struggled with the loss of significant accounts, including the Department of Defence, while internal overhead grew due to a 45% increase in service fees paid to the UK-based parent company.
WPP AUNZ creative agency revenue fell 24% to $191 million for 2025, contributing to a $60 million group-wide revenue loss. The firm's total revenue declined 9% to $700 million, burdened by a $44 million impairment expense.
The players
WPP AUNZ
A major multinational creative transformation agency group operating across Australia and New Zealand.
VML Australia
A creative agency subsidiary of WPP that serves large-scale government and commercial clients.
Ogilvy
A global advertising and public relations agency network owned by WPP.
Rose Herceg
The executive who transitioned to the CEO role in April 2026.
The details
The revenue contraction was driven by the loss of major high-value contracts, including VML Australia’s $112 million Defence deal and Ogilvy’s Suncorp account. While specialist revenue saw a minor growth of 1.9%, media and PR divisions posted respective declines of 1.5% and 9.3%. Despite these challenges, the company reduced its employee benefits expenses by 8.8% to $368 million.
Timeline
November 2024: Ogilvy lost the Suncorp account.
Year ended 31 December 2025: WPP AUNZ recorded its annual financial results.
April 2026: Rose Herceg's title officially changed to CEO.
Market Landscape
The firm's $44 million impairment expense reflects a major shift in its financial valuation amid a concentrated loss of anchor clients. This follows a period of contraction across the agency sector as firms grapple with client retention and rising inter-company service fees.
Operators should monitor how their own service fees to parent entities scale relative to regional performance, as evidenced by the 45% increase at WPP AUNZ. Additionally, high client concentration remains a significant risk factor for agency revenue stability.
The takeaway
Concentrated revenue dependence on single large accounts can create extreme volatility when contracts are not renewed. Managers should diversify client bases and ensure that internal overhead growth does not outpace regional productivity during down cycles.
Further reading
For more on industry performance trends, visit the Advertising section.
Source note: This article includes information reported by Mumbrella.
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