London-based advertising company reports like-for-like revenue less pass-through costs of 8.3% for second quarter
Like-for-like revenue less pass-through costs compares net sales at constant currencies and excludes acquisitions, disposals and pass-through costs such as expenses billed to clients.
WPP Chief Executive Mark Read said the new guidance reflects strong performance in the first and second quarters, which might weaken later in the year.
“The economy has proven more resilient, perhaps, than people expected, to the events in Ukraine and a rise in the oil price,” Mr. Read said. “But we do expect growth to be somewhat lower in the second half than it had been in the first half.”
Like-for-like revenue less pass-through costs was up 8.3% in the second quarter from a year earlier. In the first quarter, the measure rose 9.5% from a year earlier.
Marketers continue to spend with WPP for a variety of reasons, including the need to drive more demand for their products as they raise prices, Mr. Read said.
“While consumer demand remains strong, clients will continue to invest,” he said. “No doubt, there’ll be challenges ahead, even particularly in 2023. But the business is in a good place to navigate them.”
Last month, rival advertising holding companies Interpublic Group of Cos., Omnicom Group Inc.
and Publicis Groupe SA
all raised their guidance for the year.
WPP said its first-half net profit rose 6.5% to 376 million pounds, equivalent to about $453 million, from £353 million in the year-earlier period. Revenue grew 10% to £6.76 billion from £6.13 billion.
Write to Megan Graham at [email protected]
Credit: www.Businesshala.com /