- WPP reported overall revenue growth of 1.4% and like-for-like revenue growth of 4.1% for Q3 2024, in line with an earnings release. The numbers reflect a jump from the relatively flat revenue growth the holding company previously reported for the primary half of the yr.
- Drivers of the strong Q3 include 7% growth from WPP’s top ten clients and significant client wins, including Amazon’s media business outside of the Americas, Unilever’s media, retail media and activation and inventive accounts in addition to Henkel’s media business.
- The agency network has notched some early Q4 wins, including Starbucks’ U.S. creative duties. Despite the strong Q3 and up to date momentum, nonetheless, WPP’s full-year guidance stays unchanged with revenue expected to be flat to down 1%, a possible reflection of ongoing uncertainty across the economy.
After the disappointing first half of the yr, WPP’s efforts at a turnaround, which have included new executive appointments, a realignment of agencies and internal adoption of AI, are bearing some fruit. The holding company recorded $1.5 billion in net new billings in Q3 2024, compared with $1.4 billion in Q3 2023. Year-to-date net new billings are $3.2 billion, compared with $3.4 billion for a similar period last yr.
“We returned to form in new business, winning Amazon’s media account outside the Americas and securing our media relationship with Unilever, including taking back the retail media and activation business in the United States,” said WPP CEO Mark Read, in a press release accompanying the earnings. “Our success with two of the world’s top ten advertisers demonstrates the renewed competitiveness of our offer.”
Stabilization in the tech sector also helped drive performance. WPP reported growth of 1.3% in this segment for Q3 compared with a drop of 5.1% in the primary half.
WPP noted in its release that the network is making progress in its AI-powered Open marketing operating system, with worker usage up 107% for the reason that starting of the yr. This system, along with the streamlining of agencies Burson, VML and Group M, are resulting in structural cost savings, in line with Read. The company’s plans to sell its majority stake in communications firms FGS Global to KKR remain on target to shut in Q4.
Revenues on the network’s Global Integrated Agencies division grew 0.5% in Q3, compared with 0.1% for Q3 2023. Media company GroupM grew 4.8%, compared with 1.6% a yr ago. Those gains offset a 3.1% decline in WPP’s integrated creative agencies, a bigger drop than the 1.1% decline in Q3 last yr.
In Q2 2024, WPP reported relatively flat revenue for the primary half of the yr. Those results led the holding company to revise its full-year expectations to flat to down 1% from flat to up 1%. The holding company has made several operational changes, including recruiting former Infosum chairman and CEO Brian Lesser to be global CEO of GroupM. WPP began the yr by merging its VLMLY&R and Wunderman Thompson agencies into one unit under the VML name.
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