WPP, the world's biggest advertising group, reported strong first half results, returning to pre pandemic levels a year ahead of forecasts.
The company posted like-for-like revenue up 16.1% in the six months and 26.4% in the three months to June. LFL revenue less pass-through costs was 11%, about 0.5% higher than the 2019 first half.
Reported revenue for the half year was up 9.8% to £6.133 billion.
The company now expects to do better than expected this year. Full year 2021 like-for-like revenue less pass-through costs growth is now expected to be up 9%-10%;
CEO Mark Read says the second quarter was the highest on record as clients reinvest in marketing, particularly in digital media, ecommerce and marketing technology.
"We have returned to 2019 levels in 2021, a year ahead of our plan, with good momentum into 2022," he says.
“We’ve also made very good strategic progress. Our recognition as the most awarded company at the 2021 Cannes Lions Festival reflects our investment in creative talent and the strength of our creative work over the past two years.
"Our focus on data, commerce and technology, through strategic acquisitions, organic investments and the launch of Choreograph, has supported a strong new business performance. Key assignment wins include AstraZeneca, Bumble, JP Morgan Chase and Pernod Ricard.
“In procurement, property and shared services, we are making strong progress as part of our overall transformation programme. We have significantly increased our incentive pools in the first half, to reflect the tremendous contribution of our people in these challenging times, and in line with our intention to reinvest in talent announced at our Capital Markets Day in December 2020.
“We expect our strategy to translate into benefits for all of our stakeholders: a powerful, modern offer to support our clients’ growth; a great place for our people to work; a positive contribution to communities and the environment; and good financial returns for shareholders, with the interim dividend raised 25% and £600 million of share buybacks planned in 2021.”
The half year 2021 numbers:
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