WPP has reported a revenue of £3.59 billion (AU$6.59 billion) in its Q1 earnings report, with CEO Mark Read saying it expects a “challenging” year ahead as it settles into its new business structure.
The result for WPP reflects a 0.9% revenue increase compared to the same period last year, during which it merged a number of agencies and cut around 3,500 jobs.
WPP noted its strongest performing regions were the Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe, which reported a revenue of £1.05 billion, up from £1.01 billion the same period last year.
The company noted Australia and New Zealand as more difficult markets in the South East Asia region.
"There was strong growth in Latin America, Central & Eastern Europe and South East Asia, with Australia and New Zealand more difficult," the report said.
Read says it’s making “good progress” in its three-year strategy to return WPP to sustainable growth.
“As anticipated, our first quarter trading update reflects the impact of certain significant client losses in 2018, in particular in the United States,” Read says.
“Although we face a challenging year, especially in the first half, I am encouraged by how well our people, agencies and clients are responding to our new strategic direction. Our expectations for the full year are unchanged.
“As we have said before, it will take time to address the company’s legacy issues, but we are committed to taking all the actions necessary to position WPP for future success.”
In Australia, WPP merged J. Walter Thompson and Wunderman, creating Wunderman Thompson, and VML and Y&R to create VMLY&R. The agencies have shown positive signs, with VMLY&R securing the lucrative Defence Force Recruiting account in January.
WPP also said its sale of Kantar is on track, with interest from “high-quality” potential buyers.
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