WPP reports strong performance in Q3 2021, adds new biz worth $1.7 bn

WPP has reported very strong Q3 2021 performance, which goes well beyond a cyclical recovery, with like-for-like growth over 2019 at 6.9% in the quarter.

Some highlights include:

  • Q3 revenue +9.1%; LFL revenue +14.7%
  • Q3 LFL revenue less pass-through costs +15.7%; +6.9% LFL on Q3 2019
  • Top five markets Q3 LFL revenue less pass-through costs: US +12.4%; UK +16.9%; Germany +34.5%; Greater China +18.0%; Australia +2.4%
  • Top five markets Q3 LFL revenue less pass-through costs on 2019: US +6.2%; UK +9.3%; Germany +32.1%; Greater China -1.7%; Australia -11.2%
  • Continued new business momentum: $1.7 billion won in Q3, $4.6 billion net year-to-date
  • Ongoing strategic progress: merger of Finsbury Glover Hering and SVC, acquisition of Satalia in AI
  • Net debt £1.6 billion, down £1.0 billion year-on-year at 2021 exchange rates: continued good working capital management
  • £448 million share buyback year-to-date: £600 million completed by year end; continuation of buyback up to 2021 preliminary results
  • Full year 2021 guidance raised again: LFL revenue less pass-through costs 11.5-12.0%, headline operating margin slightly above 14%

Commenting on the group’s performance, Mark Read, Chief Executive Officer of WPP, said, “Clients across all sectors and geographies are making significant investments in marketing, particularly in digital media and e-commerce services. We are now above 2019 levels in all of our business lines, and with the actions we have taken over the last three years, we are even better positioned for growth.”

He further said, “Our reshaped offer – which combines creativity with technology and data, through Choreograph, with the largest global media platform in GroupM – is proving its value for existing and new clients. This is reflected in the continuation of our longstanding and successful partnership with Unilever, and the growth of our relationship with Bayer. In addition, we are delighted to have won new assignments with Beiersdorf, L’Oréal, Sainsbury’s and TD Bank.”

“We have also made strategic progress, creating the world’s leading board-level communications firm through the merger of Finsbury Glover Hering and SVC, and acquiring Satalia, a specialist in artificial intelligence. We continue to return excess capital to shareholders, buying back 4% of our shares so far this year. With strong client demand, a clear strategic direction and a strong balance sheet, we are well positioned to continue our momentum into 2022 and beyond,” Read added.

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