Flat Quarter for WPP as Kantar Brings Up Rear Again

WPP has reported a flat quarter, with group like-for-like revenue up 0.2%. In the Data Investment Management division, Kantar, like-for-like revenue once again trailed the rest of the group, down 3.4%, despite strong growth in net sales in the UK, Latin America and Africa.

WPP prefers to compare net sales figures which it says more accurately reflect the relative strength of its operations - for Data Investment Management (DIM), these declined by just 0.8% like-for-like.

The Group's reported revenue was up 16.9% in pounds sterling, at £3.597bn, equivalent to a 1.2% rise in USD ($4.457bn). Constant currency revenue for the acquisitive group was up 3.6%. Net sales for the Group were up 0.8% like-for-like, with growth from acquisitions of 4.0%. Net new business was strong at $2.103bn, up from $1.779bn last year. North America, with like-for-like revenue and net sales down 3.0% and 1.1% respectively, was the weakest performing region, despite a good performance in public relations and public affairs, branding & identity and digital, eCommerce and shopper marketing businesses.

DIM was among the divisions reporting a revival in the UK, but was flat in western continental Europe.

The firm's preliminary quarter one revised forecast indicates c.2% improvement in revenue and net sales this year, and WPP says the business as a whole 'remains geographically and functionally well positioned to compete successfully and to deliver on its long-term targets'.

Details are online at www.wppinvestor.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.