WPP’s top-line performance in Q3 was below our expectations: Mark Read

WPP has stated that its third quarter performance has been impacted by the continuation of second quarter trends. The group has reported revenue of £3,508 million in Q3.

WPP won $1.4 billion net new business in Q3, which included Estée Lauder, Hyatt, Lenovo, Nestlé, Unilever and Verizon, among others. $3.4 billion net new business was won year-to-date.

During the quarter, WPP undertook two significant moves to further strengthen its competitive offer, simplify its business and benefit from scaled technology platforms:

• Launch of VML, the world’s largest creative agency with world-class creativity and deep expertise in commerce, data and technology.
• Further integration of GroupM with common products and single technology platform, streamlining of operations and back-office functions supporting client-facing agencies.

Together, these moves are expected to drive stronger revenue growth and net annualised cost savings of at least £100 million in FY25 with a part-year benefit in FY24. 

In an earnings release, Mark Read, CEO, WPP, said, “In a world being rapidly reshaped, we need to continue to evolve our offer to clients and simplify our business. I am excited by the creation of the world’s largest creative agency, VML, and the continued evolution of GroupM. Both these developments will strengthen our offer to clients, simplify the integration of our services and maximise the returns on our ongoing investments in AI and technology.”

At the same time, he admitted, “Our top-line performance in Q3 was below our expectations and continued to be impacted by the cautious spending trends we saw in Q2, particularly across technology clients with more impact from this felt in GroupM over the summer than the first half.”