Bullish WPP raises guidance after strong 3rd quarter

wpp - bullish upgrade

In bullish form, global advertising giant WPP has raised its full year trading estimates after reporting a 14.7% rise in like-for-like revenue in the third trading quarter.

In a clear sign of the economic recovery in the media, marketing and advertising sector, the FTSE-100 listed company said its new business momentum continued, with $1.7 billion won in the latest quarter, bringing the tally to $4.6bn net for the year to date.

Bullish return to growth

The UK was among the top five performing markets for the company, turning in an increase in revenue of 9.3%.

Germany saw a 32/1% rise in LFL revenue and the US was 6.2% higher. 

Mark Read, Chief Executive Officer of WPP, said: “Our very strong performance goes well beyond a cyclical recovery, with like-for-like growth over 2019 at 6.9% in the quarter. 

“Clients across all sectors and geographies are making significant investments in marketing, particularly in digital media and e-commerce services. 

“We are now above 2019 levels in all of our business lines, and with the actions we have taken over the last three years, we are even better positioned for growth.

“Our reshaped offer – which combines creativity with technology and data, through Choreograph, with the largest global media platform in GroupM – is proving its value for existing and new clients. 

“This is reflected in the continuation of our longstanding and successful partnership with Unilever, and the growth of our relationship with Bayer. 

“In addition, we are delighted to have won new assignments with Beiersdorf, L’Oréal, Sainsbury’s and TD Bank.

“We have also made strategic progress, creating the world’s leading board-level communications firm through the merger of Finsbury Glover Hering and SVC, and acquiring Satalia, a specialist in artificial intelligence. 

“We continue to return excess capital to shareholders, buying back 4% of our shares so far this year. 

“With strong client demand, a clear strategic direction and a strong balance sheet, we are well positioned to continue our momentum into 2022 and beyond.”

As a result of its continued strong business momentum in Q3, WPP said it was further raising its guidance for 2021.

It now forecasts like-for-like revenue less pass-through costs growth of 11.5-12.0% (previously 9-10% growth).

WPP’s shares were trading 3.55% higher at £10 per shares at the market open on Thursday.