WPP records 10.7% growth in India in Q3 2022

WPP has reported +10.3% growth in its Q3 2022 revenue, with LFL revenue growth at +2.7%. Q3 LFL revenue less pass-through costs was at +3.8%. The group reported acceleration of growth on 2019 levels at +10.9% (Q2 +9.7%, Q1 +9.2%).

Top five markets for WPP are:

USA +4.5%
UK +4.2%
Germany -8.7% (+3.3% excluding the impact of Covid-related contract in prior year)
China -9.0%
India +10.7%

The other major growth markets are Brazil +19.7% and Canada +7.7%.

WPP’s net new business wins were at $1.7 billion in Q3 and $5.1 billion net in year-to-date.

The group updated its Full year 2022 guidance: LFL revenue less pass-through costs growth was raised to 6.5-7.0% (previously 6.0-7.0%); headline operating margin was up 30 to 50 bps (previously up around 50 bps)

By business sector

Global Integrated Agencies +4.3% (GroupM +4.7%, ex GroupM +4.0%)
Public Relations +5.8%
Specialist Agencies -3.9% (+8.6% excluding Covid-related contract above)

Commenting on the performance, Mark Read, Chief Executive Officer of WPP, said, “WPP continues to show strong momentum, reflecting broad-based growth across our agencies, markets and industry sectors and the investment by our clients in marketing, e-commerce and digital transformation. Our performance on a three-year basis has continued to improve each quarter during 2022.”

He further said, “Our new business success reflects the quality of our creative work, our strength in media and our ability to deliver integrated solutions to clients. During the quarter we achieved $1.7 billion of net new business, including assignments with NestleÌ, Samsung and SC Johnson. Our leading scale and differentiated offer were exemplified by GroupM, which led COMvergence’s new business and retention global rankings in the first half of 2022.”

“Our growth over the year has been strong with full year like-for-like revenue less pass-through costs now upgraded to 6.5-7.0%. We have continued to invest in our people and in data and technology to support this growth, resulting in headline operating margin now expected to be up 30 to 50 bps. We are on track with the £300 million transformation savings and will continue to manage our costs with discipline,” he added.