WPP has announced a modest revenue increase of 1.4% for Q3-2024, with like-for-like (LFL) revenue rising 4.1%. Excluding pass-through costs, LFL revenue saw a slight growth of 0.5%, driven by North America (+1.7%) and Western Continental Europe (+2.2%), while the UK remained flat. However, the Rest of World segment experienced a decline of 2.2%, significantly impacted by a 21.3% drop in China.
The Global Integrated Agencies recorded a 0.5% increase in LFL revenue less pass-through costs, a slight improvement from 0.1% in Q3 2023. GroupM’s growth rose to 4.8%, up from 1.6% last year, although integrated creative agencies faced a 3.1% decline, slightly worse than the previous year’s -1.1%.
WPP’s top ten clients saw a robust growth of 7.0% in Q3, with notable increases in the consumer packaged goods (CPG), automotive, travel and leisure, and financial services sectors. The technology sector showed signs of stabilization, growing by 1.3% compared to a 5.1% decline in the first half of 2024. Meanwhile, healthcare and retail sectors continued to feel the effects of client losses from 2023.
The company reported strong progress on strategic initiatives, launching new products and capabilities through WPP Open, its AI-powered marketing operating system. Notable client wins in Q3 included Amazon (media excluding Americas), Unilever (media, retail media, activation, and creative), and Henkel (media). A strong start to Q4 was marked by wins from Starbucks (US creative) and Honor (global media, including China).
WPP achieved net new billings of $1.5 billion for Q3, slightly up from $1.4 billion in the same quarter last year, bringing year-to-date net billings to $3.2 billion. Adjusted net debt as of September 30, 2024, stood at £3.6 billion, down £0.3 billion year-on-year.
The company is on track to finalize the sale of its majority stake in FGS Global in Q4, expecting net cash proceeds of approximately £604 million after tax, which will be used to reduce leverage.
WPP’s guidance for 2024 remains unchanged, projecting LFL revenue less pass-through costs to range from -1% to 0%. However, Q4 is anticipated to face tougher comparisons than Q3 amidst ongoing macroeconomic uncertainty, with a slight improvement in FY24 headline operating profit margin expected.
Mark Read, Chief Executive Officer of WPP, said, “Our third quarter delivered like-for-like growth in net sales5, 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.
“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. 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.
“Our people are increasingly embedding AI in the way that we work and deliver creative and media campaigns to clients, with usage of WPP Open up 107%6 since the beginning of the year. Supporting this, the creation of VML and Burson, and the simplification of GroupM, are delivering a stronger business and structural cost savings.
“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.”
