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WPP Returns to Growth in Q3

October 25 2019

In a trading update for the third quarter, WPP has reported its first like-for-like (LFL) revenue increase of the year - with insight division Kantar sharing in the improvement. Group reported revenue rose 1.9% LFL to £3.29bn.

Mark ReadShareholders voted yesterday to approve WPP's proposal to sell 60% of Kantar to private equity firm Bain Capital, and today's results separate out performance with and without Kantar, which is now categorized as an 'asset held for sale'. CEO Mark Read (pictured) said the results represented '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'. He adds a note of caution: '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'.

The firm cites major new business wins in the quarter including Mondelez and eBay, but says it is also growing and retaining longstanding clients. Says Read: 'In the last 12 months, WPP has taken decisive action and made substantial progress on many fronts: we have fewer, stronger agency brands; new leadership in many of our companies; enhanced central teams supporting our companies; and a renewed commitment to creativity, powered by technology. We have cemented our position as the largest partner to the world's leading technology firms and, most importantly, the work we do continues to be highly valued by our clients as we adapt to their changing needs in a dynamic marketplace'.

Growth in other major regions was partly offset by slower performance in North America; and the group said while its Global Integrated Agencies grew strongly, its Public Relations and Specialist Agencies performed less well.

Web sites: www.wpp.com and www.kantar.com .

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

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