WPP has been removed from the MSCI United Kingdom Index, a finance industry benchmark used by investors to measure global stock market performances and diversify investment strategies. The MSCI UK Index focuses on large and mid-cap companies in the UK, with market capitalization playing a crucial role in a company’s inclusion. As of the end of October, the smallest company on the index had a market cap of US$3.25 billion (AU$4.97 billion), while WPP’s market cap stands at around £3.01 billion (AU$6.07 billion).
This delisting is part of a broader troubling trend for WPP, which has seen its share price drop nearly two-thirds in 2023 due to significant client departures and leadership changes. For instance, Coca-Cola transitioned its North American media account, worth approximately AU$1.06 billion, from WPP to Publicis, and Mars’ global media account worth AU$2.58 billion also shifted away in June.
Despite the losses, WPP has had some victories as well, retaining EA Sports’ global media account and winning Reckitt’s European media account, valued at roughly AU$1 billion. WPP Media, its Australian branch, has bucked the downward trend of its counterparts in the US and Europe by winning various awards, including B&T Media Agency of the Year for two consecutive years.
The removal from the MSCI index is not necessarily an irreversible situation. Other companies have successfully returned to the index after being delisted. For example, Endeavour Mining reinstated itself on the index after being removed previously. WPP is not alone in facing market challenges, as rival holding companies like Publicis and Omnicom have also experienced declines in share prices this year.
Interestingly, WPP’s new CEO, Cindy Rose, has been in her position for less than six months and plans to unveil a strategic update in the first quarter of 2026. Her experience in technology and strong focus on AI may help reshape the company. Recently, WPP announced a five-year partnership expansion with Google, aimed at leveraging cloud computing and AI to enhance its services.
While challenges abound, WPP’s proactive measures indicate potential for recovery and transformation. The market is now closely watching how Rose and her leadership team, assisted by notable consultants like McKinsey, will navigate this precarious phase and strive to regain momentum in a competitive landscape.