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Advertising giant WPP sees revenue boost from key contracts with Amazon and Unilever

The advertising giant reported like-for-like revenue growth of 4.1 per cent in the quarter to September 30, with a strong performance from its GroupM division

Signage outside the WPP offices in London (Image: Chris Radburn/PA Wire)

Advertising behemoth WPP reported a 4.1 per cent increase in like-for-like revenue for the quarter ending 30 September, despite witnessing a slump in business outside of the US and Europe.

However, there was a year-to-date decline in net new billings, with the figure standing at $3.2bn (£2.5bn), down from $3.4bn (£2.6bn) in 2023, as reported by .

The company faced challenges in other regions, with º£½ÇÊÓÆµ revenue remaining stagnant, Chinese revenue falling by 21.3 per cent, and a 2.2 per cent drop in the rest of the world.

WPP's subsidiary Groupm emerged as a silver lining, with its revenue surging by 4.8 per cent over the quarter.

The quarter saw a modest rise of just 0.5 per cent in like-for-like revenue less pass-through costs. Revenue from North America and Western Europe increased by 1.7 per cent and 2.2 per cent respectively.

New contracts with Amazon and Unilever contributed to the revenue boost. A forthcoming contract with Starbucks is anticipated to further enhance revenue in the next quarter.

Consequently, the group maintained its guidance, projecting the 2024 revenue less pass-through costs to range between a one-per cent decrease and flat.

WPP also raised its operating profit margin target by 20 to 40 basis points.