23rd Oct 2024 09:33
(Alliance News) - WPP PLC on Wednesday reported revenue growth for its third quarter, and it reiterated its full year guidance.
Shares in WPP were trading up 4.1% at 805.20 pence on Wednesday morning in London, among the best large-cap performers.
The FTSE 100-listed advertising company recorded a 1.4% increase in third-quarter revenue to GBP3.56 billion from a year prior. It climbed 4.1% like-for-like. It said net new billings for the period increased on-year to USD1.5 billion from USD1.4 billion.
Revenue less pass-through costs declined 2.6% on-year to GBP2.77 billion, but rose 0.5% on a like-for-like.
The London-based firm secured notable client wins throughout its third quarter, including e-commerce firm Amazon.com Inc, consumer goods firm Unilever PLC and chemical company Henkel AG & Co KGaA. It also acknowledged a positive start to this quarter with existing clients, including coffee chain Starbucks Corp and consumer electronics firm Honor Device Co Ltd.
WPP confirmed it is on track to sell its majority stake in communications consultancy FGS Global during the final stretch of the year. It agreed to sell its roughly 50% interest in August to an acquisition vehicle with funds managed or advised by private equity firm Kohlberg Kravis Roberts & Co LP.
The consideration for the sale is USD775 million, payable in cash. WPP said Wednesday it expects post-tax proceeds of GBP604 million to go towards trimming debt.
WPP Chief Executive Mark Read said: "Our third quarter delivered like-for-like growth in net sales, with a strong performance from GroupM in particular. We saw growth in North America, Western Continental Europe and India, though trading in China remains difficult.
"We are encouraged by progress during the quarter, but with recent new business wins primarily impacting 2025 and continuing macroeconomic pressures our expectations for the full year remain unchanged."
For the whole of 2024, it still expects a like-for-like revenue, excluding pass-though costs, outcome ranging from a 1% fall to flat from 2023. It said the fourth-quarter is "facing a tougher comparative" than the third, as well as "macro uncertainty".
By Christopher Ward, Alliance News reporter
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