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WPP Scangroup Plc reported a half-year net loss of KSh 208.3 million for the six months ended June 30, 2025, an improvement from KSh 252.3 million a year earlier.
- •The group benefited from lower foreign exchange losses and tighter cost controls, though weak client spending continued to weigh on revenue.
- •Gross profit declined 16% to KSh 814.6 million, reflecting subdued demand for advertising and communications services.
- •Other income dropped to KSh 5 million from KSh 61.6 million, while operating and administrative expenses eased to KSh 1.08 billion from KSh 1.11 billion.
Forex losses narrowed to KSh 6.5 million compared with KSh 251 million in H1 2024, cushioning the bottom line. Earnings per share improved to a loss of KSh 0.46 from KSh 0.57, while the total comprehensive loss narrowed by 76% to KSh 63.6 million.
| Metric | Jun 30 2025 | Jun 30 2024 | YoY % |
|---|---|---|---|
| Gross Profit | 814.6 Mn | 972.3 Mn | -16.2% |
| Interest Income (net) | 92.1 Mn | 121.0 Mn | -23.9% |
| Other Income | 5.0 Mn | 61.6 Mn | -91.9% |
| Operating & Admin Expenses | -1.08 Bn | -1.11 Bn | -2.8% |
| Expected Credit Loss Reversal | 1.35 Mn | 2.57 Mn | -47.7% |
| Foreign Exchange Loss | -6.46 Mn | -250.99 Mn | -97.4% |
| Loss Before Tax | -173.6 Mn | -206.2 Mn | +15.8% |
| Loss for the Period | -208.3 Mn | -252.3 Mn | +17.4% |
| Earnings Per Share (EPS) | -0.46 | -0.57 | +19.3% |
| Total Comprehensive Loss | -63.6 Mn | -269.8 Mn | +76.4% |
| Total Assets | 6.62 Bn | 7.25 Bn | -8.7% |
| Total Equity | 4.58 Bn | 4.95 Bn | -7.4% |
| Cash and Cash Equivalents | 1.141 Bn | 2.040 Bn | -44.1% |
Financial Position and Market Context
Total assets fell to KSh 6.62 billion from KSh 7.25 billion, with equity down to KSh 4.58 billion from KSh 4.95 billion. Cash and cash equivalents declined to KSh 1.14 billion from KSh 2.04 billion, underscoring a liquidity strain.
The results come amid heightened internal and market challenges. In July, CEO Patricia Ithau exited at the end of her contract, and Chief Operating Officer Miriam Kaggwa was appointed interim CEO. The leadership transition follows a period marked by client attrition, talent departures, and legal disputes, including a data privacy ruling against the firm.
WPP Scangroup has faced structural risks, including the loss of long-standing clients such as Airtel Africa, while rival agencies led by former executives capture market share. The company’s stock has remained under pressure, trading near historic lows.
The board said the near-term focus will be on maintaining operational stability, tightening costs, and selective investment in growth areas. The leadership review and financial discipline will determine how quickly the company can regain momentum in a sector facing both economic and technological disruption.