LONDON - Shares of WPP (NYSE: LON:WPP) jumped 4.44% after the advertising giant reported third-quarter results that demonstrated resilience in the face of ongoing macroeconomic pressures.
While revenue fell short of estimates, the company maintained its full-year guidance and highlighted progress on strategic initiatives.
WPP posted Q3 revenue of $3.56 billion, below the consensus estimate of $3.62 billion. However, like-for-like revenue less pass-through costs grew 0.5% YoY, showing modest growth despite headwinds.
"Our third quarter delivered like-for-like growth in net sales, with a strong performance from GroupM in particular," said Mark Read, Chief Executive Officer of WPP. "We saw growth in North America, Western Continental Europe and India, though trading in China remains difficult."
The company highlighted several key wins during the quarter, including Amazon (NASDAQ:AMZN)'s media account outside the Americas and securing its media relationship with Unilever (LON:ULVR). These wins with major advertisers demonstrate the "renewed competitiveness" of WPP's offerings, according to Read.
WPP maintained its full-year 2024 guidance, projecting like-for-like revenue less pass-through costs growth between -1% and 0%. The company also expects headline operating margin improvement of 20-40 basis points, excluding foreign exchange impacts.
While facing challenges in China, where revenue declined 21.3% YoY, WPP saw growth in other key markets. North America revenue grew 1.7%, Western Continental Europe rose 2.2%, and the UK was flat compared to last year.
The company continues to make progress on strategic initiatives, including the rollout of its AI-powered marketing operating system WPP Open. Monthly active users of the platform increased 107% since the start of the year.
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