WPP posted a 10.2% lift in revenue to £6.755 billion in the six months to June with client demand “strong” across most segments and regions.
On a like-for-like (LFL) basis, revenue was up 8.7% for the half year, ahead of analysts expectations for organic growth.
The world’s biggest advertising group again upgraded its full year guidance to organic growth of 6% to 7%, from 5.5% to 6.5%.
WPP increased its interim dividend by 20% to 15 pence.
In the June quarter, organic growth was 8.3%, Across the regions: US 10.4%, UK 6.2%, Germany 11.5%, China (6.1)% (affected by lockdowns), Australia 3.2%.
The company joins other global advertising holding groups -- Havas, Publicis, Omnicom, and IPG -- posting better than expected June quarter results.
WPP CEO Mark Read: “We have enjoyed a strong first half, with broad-based growth across our creative, media and public relations businesses.
“This reflects the improved competitive position of our creative businesses, with their growing capabilities in commerce, experience and technology, our continued strength in media and the resurgence in demand for strategic communications advice from our public relations agencies.
“Our services are business-critical – driving growth, building brands, innovating and helping clients navigate an increasingly complex marketing environment.
“As major advertisers increasingly look to integrate their marketing investments, we are well positioned to serve the world’s largest companies, demonstrated by our success with Coca-Cola, which we are now onboarding at pace. The second quarter saw significant assignment wins from Audi, Audible, Danone and Nationwide.
“Our commitment to creativity was recognised at Cannes Lions in June where WPP was awarded the most creative company, recognising the quality of our work in all areas, spanning film, digital, media, commerce and creative business transformation.
“It’s a testament to our investment in creativity and the talent of our people, and I am committed to making WPP the most creative company in the world.
“Our clients are continuing to invest in WPP’s services, which reflects our attractive industry exposure in technology and healthcare, our broad global footprint, and the importance of what we do for their businesses. The actions we have taken over the last four years leave WPP much better positioned with a more uncertain economic environment ahead.”
OUTLOOK
WPP says the market has continued to be strong in the first half of the year, with many sectors seeing significant growth in advertising spend.
GroupM now expects global advertising to grow by 8.4% in 2022, marginally lower than the 9.7% estimate in December 2021, mainly due to a softer outlook for China amid ongoing lockdowns.
GroupM expects 12% growth in digital advertising revenues in 2022, a deceleration from the 32% growth in 2021. Overall, digital advertising on pure-play platforms represents 67% of total advertising revenues.
Retaining its critical brand-building role, spend on television advertising is forecast to grow at 4% in 2022. By geography, the US advertising market is expected to remain robust, growing by 10.0% while the UK is expected to grow by 9.3%.
Germany, Europe’s second-largest advertising market, is forecast to grow at a similarly high pace in 2022 at 9.1%. China is expected to grow by 3.3% in 2022, a downgrade from the 10.2% forecast in December 2021, reflecting the impact of the lockdowns during much of the first half of 2022
June half 2022:
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