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Advertising giant WPP (WPP.US) regains growth in Q3, maintains full-year guidance

Market IntelWednesday, Oct 23, 2024 5:10 am ET

1min read

Global advertising giant WPP (WPP.US) reported its Q3 2024 earnings. The company's revenue, excluding transaction costs, was GBP2.765bn in Q3, up 0.5% YoY, topping the consensus estimate of a YoY decline of 0.1%. The much-watched metric regained growth momentum, driven by higher spending from larger clients and stable advertising spending from tech clients, according to the company.

However, WPP CEO Mark Read said, "Trading remains difficult in the short term, particularly for WPP. We work with many luxury, automotive and fast-moving consumer goods companies, all of which are facing some macro and competitive pressures." He added that the outlook for US consumers is more complex, with pressure persisting in the lower end of the market, "companies that have pushed price too hard have found the market a bit difficult."

WPP said its top 10 clients' revenue, excluding transaction costs, grew 7% in Q3, and its tech clients' revenue, excluding transaction costs, grew 1.3% in Q3.

WPP still expects full-year revenue, excluding transaction costs, to grow -1% to 0% in 2024. Mark Read said, "We are encouraged by the progress in Q3, but given that recent new business wins mainly impact 2025 and macroeconomic pressures persist, we maintain our full-year expectations."

As of the time of writing, WPP rose nearly 4% before the US market opened on Wednesday.

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