WPP PLC (LON:WPP)’s set revenue (which excludes fees WPP pays to other businesses as part of projects) rose 11.0% on a like-for-like basis, to £4.9bn. Operating profit, excluding restructuring and Covid-related costs, was 54.5% higher than 2020 at £590m.
Q2 2021 hedge fund letters, conferences and more
WPP said the market recovery has been much faster than expected, and full year guidance has been raised. Net revenue is now expected to rise 9%-10%, up from mid-single digits. The group expects to return to 2019 levels a year ahead of plan. FY2021 operating margins should be at the top end of the 13.5% - 14% guidance range.
Brendan Moorcroft has been confirmed as the new CEO.
The shares rose 3.0% following the announcement.
WPP Raises Its Full Year Guidance
Sophie Lund-Yates, senior equity analyst at Hargreaves Lansdown
“After an incredible start to the year, WPP has upped its full year guidance, and is a year ahead of its own recovery plan. This is a welcome growth spurt for the giant, after a year when above the line marketing spending was turned off like a tap. Its enormous global footprint means it acts as a good barometer for the marketing world more generally, and the read-across for the sector is positive.
Trends are still quite tame when compared to pre-pandemic times so the work’s not over yet. Crucially, WPP needs to keep peddling hard to further strengthen its digital offerings. The world of advertising and marketing has changed drastically – a shift accelerated by Covid. Long-term success will mean harnessing this newfound momentum. The direction of travel is to be applauded, but with cash still flowing out the door, the new CEO has a big task in front of him.”
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