Mark Read is chief executive of WPP
(Picture: WPP)WPP has hailed a record-breaking recovery for the ad industry, as corporate clients ramp up marketing budgets to ride the economic rebound.
In a blockbuster set of half-year results, WPP revealed that underlying revenues jumped 19.3% in its June quarter, with the UK division leading the way after growth of 32% in a return to levels even better than before the pandemic.
The advertising, public relations and media giant, whose brands include Ogilvy, GroupM and Mediacom, has secured $2.9 billion of new work in the first half of the year, with AstraZeneca, JP Morgan Chase and dating app Bumble among big-name clients.
Chief executive Mark Read said the performance had exceeded all expectations: “We’re probably seeing the strongest recovery in advertising market spend in the last century.”
WPP’s second quarter revenues figure smashed City forecasts for a 12.4% increase, prompting shares to jump 3%.
Read also said revenues should grow by up to 10% overall this year, above the mid-single digits previously expected. He added: “We have returned to 2019 levels in 2021, a year ahead of our plan, with good momentum into 2022.”
Read also announced a 25% hike in the interim dividend to 12.5p and a step-up in share buybacks, with another £350 million due in the second half.
As well as the economic recovery, WPP is benefiting from the pandemic accelerating digital trends as companies have significantly scaled up their e-commerce presence. WPP’s rivals including Omnicom and Publicis have also reported better-than-expected trading.
WPP shares, which have gained 17.6% this year, were up another 22p to 963.0p.
