WPP reported a “strong” March quarter with like-for-like revenue up 8.1% to £3.091 billion.
The world's biggest advertising group now expects full year growth to be in the range of 5.5% to 6.5%, up from previous estimates of 5%.
The result is in line with other global advertising groups -- Publicis Groupe, Omnicom and Havas -- reporting better than expected March quarter results.
Havas Group posted a 11.3% lift in organic revenue, Omnicom 11.9% and Publicis Groupe 10.5%.
WPP CEO Mark Read: “The year has started very well with continued momentum from 2021 resulting in strong growth across all businesses and regions.
“Demand is strong for our services, particularly in digital media, ecommerce, data and marketing technology.
“We continue to see strong demand for our services from our clients and to invest in the many opportunities for growth driven by the digital transition, including Choreograph and the recent (ecommerce business) launch of Everymile.
“We remain very mindful of the impact of the broader macroeconomic environment on our business and will respond quickly to any changes as the year progresses.”
Read also spoke of the humanitarian crisis from the war in Ukraine.
“We continue to support our people in Ukraine, many of whom are now displaced, with financial and practical assistance,” he says.
“Our partnership with the UNHCR on their emergency fundraising appeal has generated $150 million to date, including over $1.3 million from our employee match-funding programme.”
WPP last month announced it would exit the Russian market. Read says WPP has now reached an agreement to divest its businesses there.
At a glance, the March quarter:
- Revenue +6.7%; LFL (like-for-like) revenue +8.1%
- LFL revenue less pass-through costs +9.5%
- Top five markets LFL revenue less pass-through costs: USA +8.9%, UK +8.1%, Germany +16.1%, China +11.9%, India +25.1%
- LFL revenue less pass-through costs by business sector: Global Integrated Agencies +8.6% (GroupM +12.8%, ex GroupM +5.6%), Public Relations +14.1%, Specialist Agencies +13.0%
- $1.8 billion net new business won, including Mars, JDE Peet’s, Sky
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