WPP reported a “positive” start to 2023, posting a 2.9% rise in net sales for the March quarter, putting the world’s biggest advertising group on track to meet full year targets.
Total revenue was 4.9% higher at £3.46 billion on a like for like basis.
The result, against a strong quarter in 2022, is in line with expectations and reaffirms annual growth expectations of 3%-5%.
WPP's numbers compare to Publicis Groupe with 7.1% in organic growth for the March quarter and Omnicom with a “solid” 5.2%.
WPP CEO Mark Read says the results reflect “continued spending by clients in communications, customer experience, commerce, data and technology” to support businesses and brands.
“We are continuing to strengthen the company – winning new clients, hiring new creative leadership, investing in our technology platforms and data, making three acquisitions in the growth areas of healthcare and influencer marketing and bringing in a minority partner to FGS Global,” Read says
“Our focus on AI over the last five years is paying off, with many examples of our work with clients, using the main AI platforms, in-market today.
“We remain on track to deliver our full year guidance, thanks to the competitiveness of our offer and our role as a modern, trusted partner to clients in a world further disrupted by technology.”
WPP says performance was broad-based across all business lines and regions.
Media planning and buying businessGroupM “performed strongly” with 6.1% growth.
Account wins include work for Adobe (media), Ford (social media), Maruti Suzuki (media), Mondelēz (production), Lloyds Banking Group (technology) and Swissport (public relations).
In Asia-Pacific growth in Australia and Japan partially offset falls in China and India.
Global agencies were up 0.7%, with “very good” growth at Ogilvy driven by strength in consumer packaged goods clients and recent new business wins.
This was partially offset by a slower start to the year at Wunderman Thompson, primarily due to lower spend from some technology clients, and AKQA Group, reflecting a softer start to the year at Grey.
In public relations, like-for-like revenue less pass-through costs was up 2.2%, with FGS Global performing strongly and slightly softer performance at BCW and Hill+Knowlton Strategies.
The March quarter numbers:
And by business sector:
And by geography:
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