WPP guidance flat amid strength in the U.S., decline in Canada

For its second quarter, ad giant WPP is reporting a bounce-back for the U.S., a decline in Canada and a steep decline in China.

Like-for-like (LFL) revenue less pass-through costs for its key U.S. market was +2.6%, with Canada down 5.6%. China was down 24.2%, with India seeing 9% growth.

The company, which has a roster that includes creative agencies like Ogilvy and Grey, media agency GroupM and PR shop Cohn & Wolfe, updated its 2024 guidance. It now notes that LFL revenue less pass-through costs will come in at -1% to 0%.

But CEO Mark Read said that Q2 saw the return to growth for the U.S., which had seen four consecutive quarters of revenue declines.

“Our second quarter performance delivered sequential improvement in net sales with continued growth in GroupM, Ogilvy and Hogarth and sequential improvement at Burson, VML and our Specialist Agencies,” Read says. “Importantly, we also saw North America return to growth in the second quarter.

North America represents 39% of total company revenue.

Read said he is very pleased with the progress WPP have made in the past six months against each of its strategic objectives, particularly its continued investment in AI, the creation of VML and Burson – the new WPP agency spawned from the merger of BCW and Hill & Knowlton – and the simplification of GroupM.”

The company reports like-for-like revenue less pass through costs for its Top 10 clients, grew 2.5% in the first half of the year.

For North America, WPP says CPG, telecoms and automotive sectors continue to grow.

New client assignments for WPP agencies include global creative for AstraZeneca’s oncology business, Hill & Knowlton picking up global PR for Shutterstock, and GroupM’s Government Practice taking media work for the Government of Canada.

Lastly, WPP says it is it has entered into an agreement to sell its whole majority stake in strategic communications and advisory firm, FGS Global, in a deal worth US$775 million.

FGS operates in 30 countries and comprises approximately 1,300 staffers.

“The sale of FGS represents an excellent outcome for WPP,” Read noted. “Together with the management of FGS we have built a world-leading strategic communications and advisory group, creating considerable value for all stakeholders.”