WPP Australia and New Zealand Recorded $36 Million Loss
The advertising group saw revenue drop in 2025 following the loss of major contracts and increased parent company fees.
Updated on Sept. 30, 2026 in Advertising
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WPP Australia and New Zealand reported a $36 million net loss for the year ending December 31, 2025, as creative agency revenue fell by 24% to $191 million. This financial downturn was driven by a $60 million loss in agency revenue and a $44 million impairment expense.
Why it matters
The company faced significant operational challenges in 2025, primarily due to the loss of key accounts including a $112 million contract with the Department of Defence at VML and the Suncorp account at Ogilvy. Simultaneously, service fees paid to the UK-based parent company rose by 45%, further straining the local bottom line.
Total agency revenue fell 24% to $191 million, while PR revenue declined 9.3% to $33 million and media revenue fell 1.5% to $402 million. Conversely, specialist revenue saw modest growth of 1.9% to reach $74 million.
The players
WPP AUNZ
This is the Australia and New Zealand branch of the global advertising, communications, and public relations company headquartered in the United Kingdom.
VML Australia
This creative agency operates under the WPP umbrella and recently lost a significant $112 million contract with the Department of Defence.
Ogilvy
Ogilvy is a global advertising and public relations agency that lost the Suncorp account in late 2024.
Rose Herceg
Rose Herceg is the executive who transitioned into the role of CEO in April 2026.
The details
The firm struggled to retain major clients throughout the year, with account losses directly impacting the group's top-line revenue. While the company recorded these losses, it concurrently managed a total workforce headcount of 2,357 employees and reduced its employee benefits expenses by 8.8% to $368 million.
Timeline
Ogilvy lost the Suncorp account in November 2024.
The fiscal reporting period for WPP AUNZ results ended on 31 December 2025.
Rose Herceg's title changed to CEO in April 2026.
Market Landscape
This decline reflects a broader trend of account volatility within the agency world as clients consolidate spending or shift providers. The performance highlights the structural pressure on regional branches as they balance local contract losses against increasing overhead requirements from global parent entities.
Average clients or partners of these agencies may experience service restructuring or changes in team staffing levels as the firm adjusts to the loss of key accounts. These financial shifts are internal to the corporate hierarchy and are not expected to result in direct retail price changes for standard advertising services.
The takeaway
Large advertising agencies often navigate significant revenue fluctuations caused by the loss or acquisition of singular, high-value government or corporate contracts. Companies must maintain operational flexibility to absorb these losses while managing the cost of global integration.
Further reading
For more context on trends impacting the industry, see the Advertising section.
Source note: This article includes information reported by Mumbrella.
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