WPP raises its forecast for 2021 after “strong” third quarter results
28 October 2021
In a business update, marcom giant WPP reported a ‘very strong’ performance in the third quarter, with revenue minus pass-through costs of £ 2.64 billion, up 6.9% LFL from at pre-pandemic levels (Q3 2019).
There are no figures released at this point for profitability, although in August the group said it returned to first half profit before tax (£ 394million) after losses of £ 3.18 billion a year earlier.
Total third quarter revenue of £ 3.2 billion was up 9.1% in reported terms and 14.7% like-for-like from the third quarter of 2020. With the elimination of pass-through costs , sales for the quarter increased by 15.7% like-for-like. -like (LFL) at £ 2.64bn, and for the year to date 15.6% LFL at £ 9.3bn. In the third quarter, LFL sales saw double-digit growth in all regions, but the biggest increase came from Western mainland Europe, which jumped 21.5% to £ 562million . Revenue less pass-through costs increased 32% LFL in Germany, 18% in China, 17% in the UK and 12% in the US.
CEO Mark Read (pictured) comments: “We are now above 2019 levels across all of our business lines, and with the actions we have taken over the past three years, we are even better positioned for the future. growth. Our redesigned offering – which combines creativity, technology and data, via Choreograph, with GroupM’s largest global media platform – proves its value to existing and new customers.
“With strong customer demand, a clear strategic direction and a strong balance sheet, we are well positioned to continue our momentum in 2022 and beyond.”
The group says it now expects full-year revenue growth of 11.5% to 12%, against a previous forecast of 9% to 10%.