Flat Kantar Beats Rest of WPP, as Sale Progresses

First quarter revenue less pass-through costs in WPP's Kantar (DIM) division was flat (up 0.1% like-for-like), while the rest of the marcoms group saw declines. Kantar, whose sale process is said to be 'progressing well', saw particularly strong growth in Asia Pacific, LatAm and the Middle East.

CEO Mark Read (pictured), who took over from WPP founder Sir Martin Sorrell last year, is driving a turnaround strategy which includes a formal process to sell Kantar, home to the agencies formerly known as TNS, Millward Brown and Lightspeed. For the quarter, DIM saw reported revenue increase 0.4% to £598m, while revenue less pass-through costs was up 0.3% to £456m.

Overall for the group, reported Q1 revenue was up 0.9% to £3.59bn, compared with £3.55bn in the prior year period, but revenue less pass-through costs fell 0.7% to £2.93bn, on a reported basis and -2.8% like-for-like. Reid said that this first quarter trading update reflects the impact of certain 'significant client losses' in 2018, in particular in the United States.

Commenting on the update, Read said: 'We continue to make good progress in implementing our three-year strategy to return WPP to sustainable growth. Although we face a challenging year, especially in the first half, I am encouraged by how well our people, agencies and clients are responding to our new strategic direction. Our expectations for the full year are unchanged. As we have said before, it will take time to address the company's legacy issues, but we are committed to taking all the actions necessary to position WPP for future success'.

Web site: www.wpp.com .