WPP returned to growth in the third quarter for the first time in a year as the world's largest advertising group restructures with fewer agency brands.
Like-for-like net sales rose 0.5% to GBP 2.725 billion for the three months to September. Industry analysts had been expecting a fall of about 0.6%.
The result compares to a negative 2.7% quarter for Publicis Groupe, a 1.4% rise at the Interpublic Group, and postive 2.2% organic growth for Omnicom.
On the London Stock Exchange, WPP shares jumped 6.10%.
Over the first nine months of the year, WPP’s growth is tracking at -1.5%. The year started with a -3.3% in the first quarter.
WPP has reaffirmed its full year guidance of like-for-like revenue growth of between -1.5% and -2%.
Chief executive Mark Read says the latest quarter performance is another important step in the strategy outlined in December 2018 to return WPP to sustainable growth in 2021.
Read, who took over when WPP founder Sir Martin Sorrell departed last year, says substantial progress has been made.
Major client wins in the quarter included Mondelez and eBay. Business with existing clients including US Marine Corps and Centrica was expanded.
WPP had net new business of $US3.9 billion in the first nine months of the year.
“We have fewer, stronger agency brands; new leadership in many of our companies; enhanced central teams supporting our companies; and a renewed commitment to creativity, powered by technology,” says Read.
“We have cemented our position as the largest partner to the world’s leading technology firms and, most importantly, the work we do continues to be highly valued by our clients as we adapt to their changing needs in a dynamic marketplace.”
In the third quarter, like-for-like growth was down 3.5% to GBP 1.034 billion in the US and up 3.1% to GBP 334 million in the UK.
WPP AUNZ reports separately to the ASX.
However, like-for-like growth in Asia-Pacific was reported at 1.2% for the third quarter, an improvement on the -2.2% in the second quarter.
WPP shareholders last week approved the part-sale of data business Kantar. WPP in July decided to sell a majority stake in Kantar to Bain Capital Private Equity for GBP2.5 billion (AUD4.48 billion).
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