WPP’s Revenue Back To Pre-COVID Levels, As Digital Ad Spend Soars

WPP’s Revenue Back To Pre-COVID Levels, As Digital Ad Spend Soars
SHARE
THIS



WPP has revealed its revenues have returned to pre-COVID levels a year earlier than the world’s biggest advertising group had expected after a resurgence in global marketing expenditure fuelled by digital media. 

Releasing its half-year update overnight, London head office announced first-half revenues of £6.1 billion ($A11.4 billion), a year-on-year increase of 16 per cent on a like-for-like basis.

WPP had previously predicted that it would take until the middle of next year for pandemic savaged revenues to recover.

Digital media was capturing much of WPP’s growth, while adding that the recovery in its traditional channels was more muted.

That said, WPP saw ad spends had risen “across all sectors”, namely led by digital, while TV ad spends globally were growing at a slower pace.

WPP’s board declared an interim dividend of 12.5 pence ($A0.23), an increase of 25 per cent, after pre-tax profits improved from £276 million ($A519 million) the same period a year ago to £502 million ($A944 million).

Shares in WPP have risen 21 per cent since the start of 2021, while its share price was up 2.9 per cent on receipt of yesterday’s news.

Highlights of the report included:

Commenting on the numbers, WPP CEO Mark Read (main photo) said: “I’m delighted with our performance in the first six months of the year, at a time when COVID continues to take a toll on many countries. The like-for-like revenue less pass-through costs growth rate of 19.3 per cent in the second quarter is our highest on record, as clients reinvest in marketing, particularly in digital media, ecommerce and marketing technology. We have returned to 2019 levels in 2021, a year ahead of our plan, with good momentum into 2022.

“We’ve also made very good strategic progress. Our recognition as the most awarded company at the 2021 Cannes Lions Festival reflects our investment in creative talent and the strength of our creative work over the past two years.

“Our focus on data, commerce and technology, through strategic acquisitions, organic investments and the launch of Choreograph, has supported a strong new business performance. Key assignment wins include AstraZeneca, Bumble, JP Morgan Chase and Pernod Ricard.

“In procurement, property and shared services, we are making strong progress as part of our overall transformation programme. We have significantly increased our incentive pools in the first half, to reflect the tremendous contribution of our people in these challenging times, and in line with our intention to reinvest in talent announced at our Capital Markets Day in December 2020.

“We expect our strategy to translate into benefits for all of our stakeholders: a powerful, modern offer to support our clients’ growth; a great place for our people to work; a positive contribution to communities and the environment; and good financial returns for shareholders, with the interim dividend raised 25% and £600 million of share buybacks planned in 2021,” Read said.

 

Please login with linkedin to comment

Mark Read WPP

Latest News

Eyeota Enhances Reach And Targeting Precision For RDA Research
  • Marketing

Eyeota Enhances Reach And Targeting Precision For RDA Research

Leading Australian market research data brand, RDA Research, provides actionable consumer intelligence to help businesses inform decision making and growth strategies. RDA Research wanted to make its unique consumer data available for addressable digital targeting and required a data onboarding partner to help activate their data in an online environment.

Enthral Strengthens Journalistic DNA By Hiring Channel 7 Reporter Sean Sowerby
  • Media

Enthral Strengthens Journalistic DNA By Hiring Channel 7 Reporter Sean Sowerby

Storytelling agency Enthral has appointed Channel 7 reporter and sports presenter Sean Sowerby as its new senior PR and content manager in Melbourne. Sowerby (pictured) started his award-winning career at 3AW before spending more than 15 years in television. Enthral founder and manager director, Cameron Smith, spoke of the significance of Sowerby joining the agency. […]

Blis Puts Its CEO In The Desert In Clever New “Data Drought” Ad
  • Campaigns
  • Technology

Blis Puts Its CEO In The Desert In Clever New “Data Drought” Ad

Ever since Google first announced it would be getting rid of third-party cookies on Chrome, digital advertising businesses have been actively sharing their plans for life after cookies. And now programmatic advertising company Blis might have come up with the most creative way to get the message across, in a new video which sees company […]

Agency Icon Sweeps The SABRE Awards
  • Marketing
  • Media

Agency Icon Sweeps The SABRE Awards

Integrated Melbourne agency Icon has taken top honours in the 2021 SABRE Awards, winning the coveted Australasian Consultancy of the Year for 2021 along with a host of category and craft awards. Icon led a large field of Australian agencies with a total of three major and seven minor awards, including gold in the cause-related […]

Former Agency Execs Launch Car Service Summon
  • Marketing
  • Media

Former Agency Execs Launch Car Service Summon

Former agency executives Tim O’Neill and Tim Fouhy have launched the auto technology startup Summon. Australia’s first full e-commerce service for prestige cars. O’Neill and Fouhy both founded Reactive, a digital agency, which was bought by Accenture in 2016. Following the deal, O’Neill and Fouhy ended up leading the company’s digital marketing arm, Accenture Interactive before […]