Troubled advertising giant WPP has returned to marginal growth after a challenging start to 2024, posting like-for-like sales growth of 0.5% year-on-year in its third quarter.
Revenue less pass-through costs hit £2.7 billion for the quarter. These latest results come after a mixed last few months, in which the advertising powerhouse has been forced to downgrade its 2024 guidance to between -1% to 0% and cut 3,000 roles in the first half of the year.
More positively, the group has continued to make significant investments in its future, having purchased indie stalwart New Commercial Arts for a reported initial £40 million just last month.
WPP was also buoyed by a strong performance from one of its flagship businesses, with GroupM registering organic growth of 4.8%, although the Chinese market continues to remain problematic for the firm which saw a 21.3% fall in the region.
The London-based outfit is stuck to its annual guidance announced in the second quarter, with the arrival of Amazon Media’s EMEA and APAC business from next year set to bolster the business.
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“We saw growth in North America, Western Continental Europe and India, though trading in China remains difficult. Most importantly, 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,” WPP CEO, Mark Read said.
“Our success with two of the world’s top ten advertisers demonstrates the renewed competitiveness of our offer. We are also proud to be supporting the new Starbucks leadership team with our recent creative win in the United States.
He continued: “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.”
The Ogilvy and VML owner’ continues to lag behind its holding group rivals however, with Publicis posting growth of 5.8% this quarter and Omnicom registering an even more impressive 6.5% uplift. New York’s IPG reported flat organic revenue growth.
