WPP reports strong H1 across biz; returns to 2019 levels a year ahead of plan

WPP has reported strong new business performance, with $2.9 billion net new billings in H1 2021. H1 reported revenue stood at 9.8%, while LFL (like for like) revenue was at 16.1% (Q2 26.4%).

The Q2 like for like revenue less pass-through costs stood at 19.3% and for the key markets it stood at US - 12.6%, UK - 31.8%, Germany - 20.3%, Greater China - 1.4%, Australia - 8.4%, and India - 30.0%.

WPP effected £248 million share buyback in H1, and plans £350 million buyback for H2.

In a statement, Mark Read, Chief Executive Officer, WPP, expressed his delight over the group’s performance in the first six months of the year amid the global pandemic and said, “The like-for-like revenue less pass-through costs growth rate of 19.3% in the second quarter is our highest on record, as clients reinvest in marketing, particularly in digital media, e-commerce and marketing technology. We have returned to 2019 levels in 2021, a year ahead of our plan, with good momentum into 2022.”

Read further said, “We expect our strategy to translate into benefits for all of our stakeholders: a powerful, modern offer to support our clients’ growth; a great place for our people to work; a positive contribution to communities and the environment; and good financial returns for shareholders, with the interim dividend raised 25% and £600 million of share buybacks planned in 2021.”

“Our focus on data, commerce and technology, through strategic acquisitions, organic investments and the launch of Choreograph, has supported a strong new business performance. Key assignment wins include AstraZeneca, Bumble, JP Morgan Chase and Pernod Ricard,” he added.