5th Aug 2021 09:18
(Alliance News) - Ad agency WPP PLC lifted its outlook on Thursday after hailing a return to pre-virus trading levels a year ahead of plan.
WPP shares were trading up 1.6% at 955.77 pence each in London on Thursday morning.
The London-based marketing communications firm reported a "strong" half-year, reporting revenue of GBP6.13 billion in the first-half ended June 30, up 9.8% from GBP5.58 billion.
WPP swung to a pretax profit of GBP394 million from a loss of GBP3.18 billion a year prior.
Revenue less pass-through costs rose 16% on a like-for-like basis, and WPP noted the second-quarter growth of 19% was its highest on record.
The company noted strong new business performance, with USD2.9 billion net new billings recorded in the first half.
"We have returned to 2019 levels in 2021, a year ahead of our plan, with good momentum into 2022," said Chief Executive Mark Read.
Full-year like-for-like revenue less pass-through costs growth is now expected to be around 9% to 10%, returning to 2019 levels a year ahead of plan.
WPP declared an interim dividend of 12.5 pence, up 25% from 10p a year ago.
The company added that it has GBP350 million in share buybacks planned for the second half, after GBP248 million was completed in the first. WPP said it has appointed Exane SA, part of French bank BNP Paribas SA, to buy up to GBP250 million in shares starting on Thursday and running through October 22.
By Scarlett Butler; [email protected]
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