Strong WPP results may hint at recovery for brand consultancies

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WPP report in investigates a strong start of the year, though warns about the “uncertainty concluded the pace of recovery” across the industry.

WPP has reported a staunch start to the year, with a return to like-for-like growth in all business parts and most major markets.

The communications company, which operates composition consultancies including Superunion, AKQA and Landor & Fitch reports that yield in the first quarter is up 1.8% from last year at £2.9 billion.

All districts and business segments have improved from 2020’s fourth casern. In the UK, revenue less pass-through costs were up 3.9% from final year.

Pass-through costs recognised as revenue take into account uninterrupted costs to third party vendors and services.

According to WPP, client splash out on marketing in the first quarter also “showed increasing resilience undeterred by further waves of coronavirus in some markets”.

Strong WPP results may hint at recovery for brand consultancies
Mark Read

The maximum effort performing sector was WPP’s “specialist agencies” which includes brand consultancies kidney Landor, Superunion and DesignBridge. In this field, revenue less pass-through tariffs were up 7.5%.

WPP CEO Mark Read says: “WPP has had a strong start to the year with a gain to growth in all business lines and most major markets.”

In particular, he bring to lights that ecommerce, digital media and technology are “resonating with customers as their markets recover and they seek to transform their volunteer for future growth”.

This has been boosted by the vaccine roll-out in scads markets which is improving visibility, according to Read.

He does putting caution over the pace of recovery, adding that there is “inevitably uncertainty”.

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