WPP’s revenue boom as they reshape their offer
WPP, the communications and advertising holding company, reported a strong third quarter.
The company hit a revenue of £3.2bn, which is a 14.7 per cent increase using like-for-like figures.
This made their year-to-date revenue less pass-through costs £7.5bn, a 12.6 per cent increase using like-for-like figures.
Mark Read, chief exec of WPP, said that the performance “goes well beyond a cyclical recovery.”
“Clients across all sectors and geographies are making significant investments in marketing, particularly in digital media and ecommerce 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.”
Discussing how WPP “reshaped” their offer, Read says the company has 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”, he said.
Analysts at J.P Morgan said that WPP was “well placed” to help guide digital advertising spend through the complex climate given their disciplines and geographical reach. They also express their confidence in WPP’s role in helping “agencies to move beyond traditional marketing to drive consideration, intent and purchases.”
Discussing the results, Chris Daly, chief exec at the Chartered Institute of Marketing said: “Whilst ongoing disruptions in global supply chains have clouded the outlook for the advertising industry, WPP’s positive results provide gentle assurance that delays are having little financial impact on the world’s largest communications group.
“One contributing factor is the advertising giant’s recent world-first collaboration with Snap Inc, the company behind social media giant Snapchat, which has boosted confidence in its prospects for the future. The launch of the augmented reality (AR) partnership has generated huge excitement within the industry – potentially set to change e-commerce forever.”