WPP, the communications and advertising holding company, reports a strong third quarter.
The company reports a revenue of £3.2bn in their recent quarter, 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, CEO 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.
They have also retained clients, including their longstanding partnership with Unilever, and growing their relationship with Bayer. In addition, WPP also won new assignments with Beiersdorf, L’Oréal, Sainsbury’s and TD Bank. This accounts to $1.7bn won in Q3, $4.6bn net year-to-date.
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.”
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WPP plc is one of the world's largest communication groups. Net sales break down by activity as follows:
- advertising and marketing services (77.5%): operating through GroupM, AKQA, Ogilvy, Wunderman Thompson, VMLY&R and Hogarth. The group also develops an advertising space purchase activity and offers services in institutional and financial communications, healthcare communications, relationship marketing, etc.;
- public relations (8.5%): Burson Cohn & Wolfe, Hill+Knowlton Strategies and FGS Global;
- specialized communication services (6.7%): Landor & Fitch and Design Bridge and Partners.
Net sales are distributed geographically as follows: the United Kingdom (13.9%), Continental and Western Europe (19.9%), North America (38.5%) and Asia/Pacific/Latin America/Africa/Middle East/Central and Eastern Europe (27.7%).