WPP reports improved performance in Q3; grows over 15% in India

WPP has reported 5.2 per cent growth in revenue from continuing operations (i.e. excluding Kantar) at £3.291 billion in the third quarter of 2019. WPP garnered net new business of $3.9 billion in the first nine months. 

Commenting on the performance, Mark Read, CEO, WPP, said, “WPP’s performance in the third quarter is another important step in the strategy we outlined in December 2018 to return the company to sustainable growth in line with our peers in 2021. Our growth in Q3 is encouraging, but we are focused on delivering these longer-term goals and know there will be twists and turns along the way. Our guidance for 2019 remains unchanged.” 

Read further said, “It continues to be a successful year for new business, with major wins in the quarter, including Mondelez and eBay, but just as importantly we are growing and retaining longstanding clients, such as the US Marine Corps and Centrica, who value the depth of our understanding and the longevity of the relationship.” 

Geographically, like-for-like revenue growth in Q3 was stronger in Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, with Western Continental Europe and the UK up strongly, partly offset by North America. South East Asia, Latin America and the Middle East were particularly strong with Africa and ANZ more difficult. By sector, the Group’s Global Integrated Agencies were up strongly, but Public Relations and the Group’s Specialist Agencies performed less well. 

Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe was the strongest performing region, with like-for-like revenue less pass-through costs from continuing operations, up 4.0 per cent in the third quarter, compared with 0.7 per cent growth in the second quarter and 1.1 per cent for the first half. Latin America, the Middle East and Central & Eastern Europe performed particularly well, with Asia Pacific and Africa more difficult. In Asia Pacific, all of the Group’s major markets, except China and Thailand, grew, with India, the Group’s second largest market in the region, up over 15 per cent. Australia and New Zealand performed below the Group average in the third quarter, with some of the Group’s creative and specialist businesses under pressure. 

In the third quarter of 2019, like-for-like revenue less pass-through costs in the Group’s Global Integrated Agencies was up 1.7 per cent, compared with -3.4 per cent in quarter one and -0.3 per cent in quarter two. This improvement came largely from North America, the UK and Continental Europe, with Wunderman Thompson, VMLY&R and Grey showing significant improvement compared with the first half. Following the merger, VMLY&R grew in the third quarter both globally and in the US. 

Public Relations, with like-for-like revenue less pass-through costs -0.9 per cent, showed some improvement compared with -1.5 per cent in the first half and -2.6 per cent in quarter two. This was driven by an improving trend in the UK and Western Continental Europe, partly offset by slightly weaker performance in North America and Asia Pacific. 

The Group’s Specialist Agencies, with like-for-like revenue less pass-through costs down 3.4 per cent, showed a significant improvement over the -7.1 per cent in quarter two and -5.7 per cent in the first half, with Geometry, AKQA, Brand Consulting and Commarco stronger.