WPP (LSE: WPP), the advertising and marketing group, reiterated its full-year guidance in its third-quarter update today, and its shares rose at the open. Revenue less pass-through costs fell 2.1% on a like-for-like basis, against a 4.7% fall in the first half.
The shares opened at 400.0p, against yesterday’s close of 384.2p, and touched 402.2p. At 09:10 they were 394.1p on a delayed quote, up 9.9p or 2.58%, with the session low at 384.0p.
Third-quarter revenue was £3,274m, up 0.5%, while revenue less pass-through costs, which strips out costs passed on to clients, was £2,411m against £2,459m a year earlier. WPP said performance was in line with expectations.
For the second half it expects like-for-like revenue less pass-through costs to fall by a low to mid single-digit percentage, with the fourth quarter towards the better end. Full-year headline operating margin is guided at 12% to 13%, and disposal proceeds of at least £200m are expected.
“We are on track to deliver phase one of Elevate28: stabilising our business performance and laying the foundations for a simpler, more unified WPP.”
Cindy Rose OBE, chief executive of WPP
Like-for-like (LFL) figures adjust for currency and acquisitions.
| Measure | Reported | LFL |
|---|---|---|
| Q3 revenue | +0.5% | +0.5% |
| Q3 revenue less pass-through costs | -2.0% | -2.1% |
| Year to date revenue | -2.8% | -1.9% |
| Year to date revenue less pass-through costs | -4.4% | -3.9% |
Under the surface, WPP Media grew 0.3% against a 2.8% fall in the second quarter, but WPP Creative fell 5.1% after a 3.5% decline. Every region fell, and the top 25 clients declined 2.7%, against 3.2% in the second quarter.
WPP renewed The Coca-Cola Company’s media business outside North America, Japan and South Korea, and DoorDash expanded its global media remit. Chief financial officer Joanne Wilson is stepping down and stays until a successor is appointed.
Yesterday the shares fell 1.91%. At 394.1p they are up 16.8% this year from 337.5p, but about 6% below the 420.0p intraday high of the 16th of October. The low was 218.5p on the 23rd of March.
WPP’s Elevate28 plan targets gross run-rate savings of £250m by the end of this year, and the company aims to position WPP for a return to growth during 2027.