28th Oct 2021 11:16
(Alliance News) - WPP PLC on Thursday delivered a robust third-quarter performance prompting the marketing and advertising agency to raise its annual guidance.
The stock was up 6.4% at 1,028.05 pence on Thursday, the best performer in the FTSE 100.
For the third quarter to September 30, WPP posted revenue of GBP3.24 billion, up 9.1% from a year before or 15% like-for-like. Revenue less pass-through costs was GBP2.64 billion, up 9.9% or 16% like-for-like.
Looking ahead, WPP raised its full-year 2021 guidance, expecting like-for-like growth in revenue less pass-through costs of 11.5% to 12%, up from 9% to 10% previously guided. In addition, headline operating margin is expected slightly above 14%.
Turning to shareholder returns, WPP said its total share buyback so far this year had reached GBP448 million. It expects to complete the GBP600 million share buyback in December.
Further, WPP said that given the strength of its balance sheet and strong cash generation, it anticipates continuing the buyback at a similar rate until its preliminary results, planned for late February 2022.
"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," said Chief Executive Officer Mark Read.
"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."
By Arvind Bhunjun; [email protected]
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