WPP Share Price Fell 5.04% on Mixed Q3 Performance Results

The WPP PLC (LON: WPP) share price fell 5.04% after the multinational communications, advertising, public relations, technology, and commerce holding company released its Q3 trading results. The company noted that its revenues fell 1.8% to £3,508 million, reflecting the ever-evolving dynamics of the global market.

However, amidst the revenue decline, there was a positive note with a 2.3% increase in like-for-like (LFL) revenue, which signifies the company's resilience and adaptability in the face of economic challenges.

Within the third quarter, the company observed varying regional revenue trends. Notably, LFL revenue less pass-through costs decreased by 0.6%. The positive momentum was observed in the UK, Western Continental Europe, and the Rest of the World.

These regions witnessed growth, reflecting the company's strong market presence and successful strategies. On the other hand, North America saw revenue declines, primarily due to ongoing challenges from technology clients. Additionally, the company faced extended weakness in the Chinese market.

The company's global integrated agencies managed to maintain stable performance, with revenue less pass-through costs growing by 0.1% in Q3. Year-to-date, they achieved a commendable 1.5% growth. 

GroupM, a crucial company segment, displayed impressive growth, recording a 1.6% increase in Q3 and an even more substantial 4.6% growth year-to-date. This growth was notably driven by positive performance in the United States and the United Kingdom. 

A significant highlight was the acquisition of $1.4 billion in net new business during the third quarter. The client portfolio expanded with esteemed names like Estée Lauder, Hyatt, Lenovo, Nestlé, Unilever, and Verizon.

Mark Read, WPP Plc’s CEO, said: “In a world being rapidly reshaped, we need to continue to evolve our offer to clients and simplify our business. I am excited by the creation of the world's largest creative agency, VML, and the continued evolution of GroupM. Both these developments will strengthen our offer to clients, simplify the integration of our services and maximise the returns on our ongoing investments in AI and technology.”

“Our top-line performance in Q3 was below our expectations and continued to be impacted by the cautious spending trends we saw in Q2, particularly across technology clients, with more impact from this felt in GroupM over the summer than the first half.”

WPP share price. 

The WPP share price fell 5.04% to trade at 656.10p from Wednesday’s closing price of 690.90p.