WPP Returns to Growth in Q3

By Paul Sandle

LONDON (Reuters) – British ad group WPP (LON:WPP) experienced a better-than-expected 0.5% rise in like-for-like organic revenue in the third quarter, driven by strong performance from its media-buying agency GroupM.

Shares rose by 5%, leading the FTSE 100 after the update on Wednesday.

WPP reported growth in North America, western continental Europe, and India, although this was partly offset by ongoing challenges in China.

Chief Executive Mark Read stated that Chinese consumers are struggling with confidence and the market will remain challenging for the remainder of the year.

> "In the short term, trading remains difficult, particularly impacting WPP, which collaborates with luxury, automotive, and fast-moving consumer goods sectors currently under significant macro and competitive pressures," he remarked.

The outlook for U.S. consumers is mixed, with persisting pressures at the lower end of the market, Read noted.

> "Companies that have pushed too hard on price have found the market a bit more difficult," he added.

Despite the positive quarter, WPP maintained its full-year guidance, anticipating organic revenue to be between 1% lower and flat for the year.