WPP Raises 2021 Guidance after 'Strong' Q3 Results

In a trading update, marcoms giant WPP has reported 'very strong' third quarter performance, with revenue minus pass-through costs of £2.64bn, up 6.9% LFL on pre-pandemic levels (Q3 2019).

There are no figures released at this stage for profitability, although in August the group said it had returned to a first half profit before tax (£394m) after losses of £3.18bn a year earlier.

Total Q3 revenue of £3.2 billion was up 9.1% in reported terms and 14.7% on a like-for-like basis vs Q3 2020. With the removal of pass-through costs, revenue for the quarter rose 15.7% on a like-for-like (LFL) basis to £2.64bn, and for the year to date 15.6% LFL to £9.3bn. During the third quarter there was double digit LFL sales growth in all regions, but the biggest increase came from Western Continental Europe, which jumped 21.5% to £562m. Revenue less pass-through costs grew 32% LFL in Germany, 18% in greater China, 17% in the UK, and 12% in the US.

CEO Mark Read (pictured) comments: '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. 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.

'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'.

The group says it now expects full-year revenue growth of 11.5% to 12%, compared to previous guidance of 9% to 10%.

Web site: www.wpp.com .