Post by account_disabled on Jan 9, 2024 1:24:29 GMT -5
Like other advertising holding companies , WPP has also lifted the curtain on its latest quarterly results, which have been significantly better than investors initially predicted. Even so, the company led by Mark Read remains cautious and has revised its forecasts for the whole year only slightly upwards. In the period between July and September 2020, WPP's net turnover fell by 7.6% to 2.4 billion pounds (2.65 billion euros) compared to the same period of the previous year. Analysts feared, however, an even bigger debacle. Deutsche Bank experts had predicted, for example, a drop of 8.5% during the third quarter of the year. “WPP continues to demonstrate its resilience in an extraordinarily challenging market,” underlines Mark Read, CEO of WPP. In any case, and although the company's results have been better than initially expected, the prices of its securities have plummeted slightly in the stock markets.
In Western Europe WPP recorded a prolapse in its turnover of 5.5% . The drop was even steeper (6.5%) in WPP's home country of the United Kingdom, while in Germany the group's performance Email Data was considerably more favorable, with revenues down just 1.8%. Much worse are the results obtained by WPP in markets such as China and India, where the company recorded falls of more than 16%. Although they are far from being rosy, the figures put on the table by the British holding company are substantially better than those corresponding to the previous quarter , when WPP reported a 15% collapse in its income . During the first nine months of the year, WPP's turnover fell by 8.9%. WPP's public relations division is the one that gained the most muscle during the third quarter of the year By business areas, WPP's public relations division is the one that seems to be facing the crisis best.
In this segment of activity the drop was 2.9% during the third quarter of the year. For its part, the "Global Integrated Agencies" division, which houses WPP's advertising and media agencies, concluded the third quarter of the year with a drop of 6.7%. The agency network that stood out the most in this area of activity was VMLY&R and GroupM also showed signs of recovery. In view of the recovery witnessed during the last quarter, WPP has revised upwards its forecasts for the year 2020 as a whole. If in August the British group expected to end the year with a decline of between 10% and 11.6%, WPP is now considering a fall that will range between 8.5% and 10.7%. The holding company expects to conclude 2020 with an operating margin of between 11.4% and 12.5%. It is worth noting, however, that these details are made under the assumption that there will be no more lockdowns in any of WPP's main markets. “In light of the increasing restrictions emanating from COVID-19 around the world and the uncertainty around the global economy, we remain cautious about the pace of the recovery ,” underlines Read.
In Western Europe WPP recorded a prolapse in its turnover of 5.5% . The drop was even steeper (6.5%) in WPP's home country of the United Kingdom, while in Germany the group's performance Email Data was considerably more favorable, with revenues down just 1.8%. Much worse are the results obtained by WPP in markets such as China and India, where the company recorded falls of more than 16%. Although they are far from being rosy, the figures put on the table by the British holding company are substantially better than those corresponding to the previous quarter , when WPP reported a 15% collapse in its income . During the first nine months of the year, WPP's turnover fell by 8.9%. WPP's public relations division is the one that gained the most muscle during the third quarter of the year By business areas, WPP's public relations division is the one that seems to be facing the crisis best.
In this segment of activity the drop was 2.9% during the third quarter of the year. For its part, the "Global Integrated Agencies" division, which houses WPP's advertising and media agencies, concluded the third quarter of the year with a drop of 6.7%. The agency network that stood out the most in this area of activity was VMLY&R and GroupM also showed signs of recovery. In view of the recovery witnessed during the last quarter, WPP has revised upwards its forecasts for the year 2020 as a whole. If in August the British group expected to end the year with a decline of between 10% and 11.6%, WPP is now considering a fall that will range between 8.5% and 10.7%. The holding company expects to conclude 2020 with an operating margin of between 11.4% and 12.5%. It is worth noting, however, that these details are made under the assumption that there will be no more lockdowns in any of WPP's main markets. “In light of the increasing restrictions emanating from COVID-19 around the world and the uncertainty around the global economy, we remain cautious about the pace of the recovery ,” underlines Read.