ADWEEK Agencies Advantage: Turnaround Signs at WPP and S4 Could Tip the Holdco Power Scales

Global advertising groups report mixed Q2 results. Publicis and Omnicom raised full-year guidance due to organic growth, while WPP and dentsu reported declines. Havas saw modest growth. Companies note clients prefer integrated services over scale. Middle East conflict impacted results. AI is improving efficiency and margins. Key figures: Publicis +4.8% Q2 growth, Omnicom +6.1% Q2 core ops growth, WPP -4.7% H1 decline, dentsu +0.3% Q2 growth.

WPP is seeking to seal details of a Sony Pictures investigation referenced in a lawsuit by former executive Richard Foster, who alleges improper rebate handling. Foster claims WPP retained $350 million in discounts while returning $110 million to clients in China. WPP argues the investigation is confidential and Foster may have obtained it illegally. Foster seeks $100 million in damages.

WPP faces a $100M lawsuit from former employee Richard Foster, alleging wrongful termination and retaliation. Sony's internal audit claims WPP used shell brokers to retain $350M in client rebates in 2024, with GroupM executives involved in kickback schemes. The case highlights governance issues and a culture incentivizing non-transparent media trading.

A new filing in Richard Foster’s lawsuit against WPP alleges Sony investigated WPP’s media operations and concluded WPP improperly withheld client rebates. The filing says Sony presented a 2025 analysis calling the practice a “global crime scheme,” citing slides with about $110 million returned to clients in China 2024 and $350 million kept for later use. WPP denies wrongdoing and seeks dismissal.

WPP plc (NYSE:WPP) reported H1 headline operating profit of £398m (8.4% margin) and said headline diluted EPS fell to £0.151 from £0.20. Net debt was £2.9bn. The board declared an interim dividend of £0.075/share. For 2H, WPP expects like-for-like revenue less pass-through costs to decline low to mid-single digits and keeps 12% to 13% margin guidance.

WPP shares rose more than 26% after CEO Cindy Rose reported interim results that beat analysts’ expectations. The ad group said revenue is easing and it won new business from Jaguar Land Rover, Estée Lauder, Heineken and Airbnb, topping JP Morgan’s net new business rankings for H1 2026. WPP plans to end its HoldCo model and cut costs via Elevate28, targeting profitability by end-2026 or early-2027.