You need to enable the GD or ImageMagick extensions for PHP (either one or the other). If you choose ImageMagick, you need to make sure that you have the packages installed.
Edit the php.ini file to enable the extension. On Windows:
extension=php_imagick.dll
or
extension=php_gd2.dll
On Unix / Linux:
extension=imagick.so
, PHP, --with-gd php5-gd. ( - php54w-gd)