Slight Decline For WPP In Q3 As China Weighs Down Results

By Steve McClellan

Slight Decline For WPP In Q3 As China Weighs Down Results

WPP reported net revenue in the third quarter of nearly 8.4 billion GBP, down 3.3% with an organic revenue decline of 0.5%. Organic revenue growth excludes currency and M&A impact.

The company said its 2024 growth is unchanged at -1% to flat.

The company's global advertising and media agency division (Global Integrated Agencies) posted organic growth of 0.5%. GroupM growth improved sequentially to 4.8%, offset by a 3.1% decline at the creative agencies.

The company's top-ten clients grew 7.0% in Q3. The CPG, automotive, travel & leisure and financial services client sectors showed growth in the quarter. The technology "stabilized" with growth of 1.3% in Q3 vs -5.1% for the first half of the year. Healthcare and retail sectors continued to be impacted by 2023 client losses, the holding company confirmed.

Q3 net new billings totaled $1.5 billion, compared to $1.4 billion for the prior year period. Net new billings for the first nine months of the year totaled $3.2 billion versus $3.4 billion for the prior year. Q3 client wins included Amazon (media), Unilever (media, retail media and activation, and creative) and Henkel (media).

The company said its agreement to sell a majority stake in FGS Global is expected to close before the end of the year.

CEO Mark Read gave a shout out to GroupM's "strong performance."

"We returned to form in new business, winning Amazon's media account outside the Americas and securing our media relationship with Unilever" Read stated. "Our success with two of the world's top ten advertisers demonstrates the renewed competitiveness of our offer."

"We are encouraged by progress during the quarter, but with recent new business wins primarily impacting 2025 and continuing macroeconomic pressures our expectations for the full year remain unchanged."

With the top four holding groups now reporting, Publicis Groupe leads the pack with net organic growth for Q3 of 5.6%.

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