WPP returns to growth in third quarter

(Sharecast News) - Advertising giant WPP said on Wednesday that it returned to growth in the third quarter, as it reiterated its outlook for the year. Third-quarter like-for-like revenue less pass-through costs rose 0.5%, with reported revenue up 1.4% and LFL revenue up 4.1%.

Revenue in North America was up 1.7%, Western Continental Europe saw 2.2% growth and the UK was flat. This was partially offset by a 2.2% decline in Rest of World, reflecting a continued drop in China, where revenue slumped 21.3%.

WPP said client wins during the quarter included Amazon, Unilever and Henkel. It also pointed to a strong start to the fourth quarter, as it won contracts with Starbucks and Honor.

The company said full-year expectations remain unchanged. For 2024, it continues to expect LFL revenue less pass-through costs to be flat to 1% lower, with Q4 facing a tougher comparative than the third quarter and macro uncertainty.

Chief executive Mark Read said: "Our third quarter delivered like-for-like growth in net sales, with a strong performance from GroupM in particular. We saw growth in North America, Western Continental Europe and India, though trading in China remains difficult.

"Most importantly, we returned to form in new business, winning Amazon's media account outside the Americas and securing our media relationship with Unilever, including taking back the retail media and activation business in the United States.

"Our success with two of the world's top ten advertisers demonstrates the renewed competitiveness of our offer. We are also proud to be supporting the new Starbucks leadership team with our recent creative win in the United States."