Is Mark Read’s Plan Working? WPP Shows Signs Of Improvement In Latest Financials

Is Mark Read’s Plan Working? WPP Shows Signs Of Improvement In Latest Financials
SHARE
THIS



Life after Sir Martin Sorrell is starting to look as though it’s back on track at WPP, with the holding company recording an improved second quarter for 2019.

Now led by Mark Read, the company earlier this year reported a profit slump of 30 per cent after the loss of some significant clientele, including American Express and United Airlines.

However things now look as though they could be improving slightly for WPP after the release of the second-quarter earnings report.

While organic growth less pass-through costs still fell 1.4 per cent for the quarter, this was an improvement from the 2.8 per cent slump in Q1 and it was less than half the fall expected by analysts.

Read said: “We set out a three-year plan, we are eight months in. We have made good progress.”

“I am sure there will be twists and turns on the way. The initial signs are positive, and of course we have more work to do.”

“We always said this year would be challenging with the client losses that started at the beginning of last year.

“While they persist we have had steady success in new business and done very well retaining business from existing clients.”

The report mentions WPP AUNZ “has not reported Q2 trading”, meaning local numbers have not been factored in.

North America was a region of improvement for the company, with revenue falling 5.3 per cent in the second quarter, compared with 8.5 per cent in the first three months of the year.

Organic growth in the UK was 1.3 per cent.

“Clients are responding well to our new offer, as evidenced by recent wins and expanded assignments including from eBay, Instagram and L’Oréal,” Read said.

“An encouraging number of our businesses and markets are achieving good growth.”

Dealing with debt

The company is still in a huge amount of debt, net debt currently sitting at £4.2bn ($AU7.45bn).

However, this was down £0.595bn ($AU1.055bn) year-on-year, thanks to a disposal programme which included the sale of 60 per cent of market research firm Kantar.

WPP announced it was selling the majority stake of Kantar last month to private equity firm Bain Capital for around $US3.1 billion ($A4.4 billion).

“When the Kantar transaction completes, our disposal programme will have generated proceeds of c.£3.6bn, allowing us to return significant amounts to shareholders and reduce our leverage to the low end of the target range,” Read said.

 

Please login with linkedin to comment

kantar Mark Read WPP

Latest News

London, UK - August 01, 2018: The buttons of Snapchat, Facebook, Instagram and WhatsApp on the screen of an iPhone.
  • Media

Snapchat Launches New Friendship Report & Time Capsule Lens With Aussie Band Sheppard

Snap Inc. the parent company of Snapchat, has released its second global Friendship Report, exploring how global issues including the COVID-19 pandemic have impacted friendship and communication in 2020. The findings showed how “social” is being inserted back into social media, with the majority of Aussies using online channels to connect with friends more than […]

WPP Q3 Revenues Fall 7.6% YOY
  • Advertising
  • Marketing
  • Media

WPP Q3 Revenues Fall 7.6% YOY

Work at WPP? Down to the last notch on your belt? Well, expect a little more tightening judging by these numbers.

by B&T Magazine

B&T Magazine
Magnifying glass icon in flat style. Search loupe on color background. Business analytic charts illustration. Vector design object for you project
  • Technology

Forrester 2021 Advertising Predictions: Prepare For A “Data-Deprived” Future

The advertising industry needs to start preparing for a “data-deprived” future, according to research company Forrester. In its 2021 predictions, Forrester points to the upcoming deprecation of third-party cookies as one of the most important upcoming trends for the industry. “The future of advertising will be one of significant upheaval,” the firm said. “Impending privacy […]

Integral Ad Science Appoints Tom Sharma As Chief Product Officer
  • Advertising

Integral Ad Science Appoints Tom Sharma As Chief Product Officer

Digital ad verification platform Integral Ad Science (IAS) has announced Tom Sharma will join the company as Chief Product Officer, effective November 2, 2020. This new hire will accelerate IAS’s global product expansion, including plans to enhance its industry-leading Connected TV (CTV) solution. Sharma will be based in New York and report directly to IAS […]

Inner Health’s Iconic Blue Bugs Are Back In New Brand Platform Via VMLY&R
  • Media

Inner Health’s Iconic Blue Bugs Are Back In New Brand Platform Via VMLY&R

Inner Health has revolutionised its famous blue bugs as part of a new brand platform launching this week.  Developed by VMLY&R, the new platform ‘Listen to your Gut’ re-introduces the bugs in a whole new environment.  VMLY&R Client Service Director Jo Millington said the new platform aimed to reposition Inner Health as an overall health […]

MINT Expands Technology Portfolio With The Addition Of Audio Brand Bang & Olufsen
  • Media

MINT Expands Technology Portfolio With The Addition Of Audio Brand Bang & Olufsen

Insight-led communications consultancy, The Mint Partners has expanded its technology portfolio with the addition of luxury audio lifestyle brand Bang & Olufsen. Founded in 1925 in Struer, Denmark, Bang & Olufsen has pushed the boundaries of audio technology for almost a century. The company continues to be at the forefront of acoustic innovation with its […]

RAC Insurance Tells WA Locals “We See What You See” In New Spot Via Wunderman Thompson
  • Campaigns

RAC Insurance Tells WA Locals “We See What You See” In New Spot Via Wunderman Thompson

WA car and home insurer, RAC has launched a new campaign to show locals that they understand the priceless relationship members have with their belongings. Created by Wunderman Thompson Perth, the campaign titled ‘We See What You See’ uses computer generated imagery (CGI) to depict the unique relationship a family has with their insured items – […]

TPG Telecom Appoints Paper Moose As Creative Agency For New Brand Felix
  • Campaigns

TPG Telecom Appoints Paper Moose As Creative Agency For New Brand Felix

Paper Moose has created a campaign for the recently announced carbon-neutral telco brand, felix, due to go to market towards the end of the year. This is the first work from Paper Moose since winning a competitive pitch for the new TPG Telecom brand. The teaser campaign raises awareness of the nearly 1 million tonnes […]

  • Technology

Why Apple Is Building Up Its Search Engine

Forget the shiny gadgets & skivvies, evidence is mounting that Apple could possibly be the Fourth Order Of The Sith.

by B&T Magazine

B&T Magazine