WPP returns to growth in the first quarter
WPP turned the corner in Q1 returning to organic growth for the first time since the world began lockdown against the Coronavirus pandemic a little over a year ago.
Net revenue reached 2.3 billion GBP ($3.23 billion) with net organic growth of 3.1%. Reported net revenue was down 1.4%.
Four of the holding company’s top-5 markets reached positive territory from an organic growth standpoint, including the U.S. (0.7%), UK (3.9%), Germany (2.5%) and Greater China (18.4%). The fifth market, India, posted a 0.5% organic revenue decline.
Despite what the company termed “continue uncertainty” in some markets it said for now it expected to generate full-year organic growth in the mid-single digits on a percentage basis.
The CEO WPP, Mark Read, said: “WPP has had a strong start to the year with a return to growth in all business lines and most major markets. He said the firm’s strengths in ecommerce, digital and technology are resonating with clients as their markets recover and they seek to transform their offer for future growth.”
During the quarter the company scored $1.3 billion (billings) in net new business. Wins in 2021 so far include Absolut global creative, JP Morgan Chase global media and Sam’s Club U.S. creative. It also retained the U.S. Navy account.
WPP reported that client spending showed “increasing resilience during the quarter despite further spikes of COVID-19 in some markets. Organic growth was achieved in 15 of the Group’s top-20 countries.
North America was up 1.6%, and in the U.S. VMLY&R was the best performer.
The company also said it expected to complete the transaction to take 100% ownership of WPP ANZ in May.
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