Global advertising giant and the world’s largest holding company WPP reported a revenue decline of 9.8% for Q3 and a decline in organic revenue (or revenue less pass-through costs) of 7.6% for the quarter.
Among other holding companies, Omnicom reported an 11.7% organic revenue decline while Publicis Groupe reported a Q3 organic revenue decline of 5.6%. IPG’s Q3 organic revenue was down 3.7%.
WPP’s India revenues, which is one of the top-5 markets for the company, in Q3 was down 16.3%, though a slight improvement from -25% in Q2.
The like-for-like revenue less pass-through costs in other four markets were: US -5.5%; UK -6.5%; Germany -1.8%; Greater China -16.7%.
According to WPP’s earning release, revenue in the third quarter was down 9.8% at £3.0 billion. On a constant currency basis, revenue was down 5.9% year-on-year. Net changes from acquisitions and disposals had a negative impact of 0.4% on growth, leading to a like-for-like performance, excluding the impact of currency and acquisitions, of -5.5%.
Revenue less pass-through costs in the third quarter was down 11.9% year-on-year to £2.4 billion, and down 8.0% on a constant currency basis. Excluding the impact of acquisitions and disposals, like-for-like growth was -7.6%. All regions and business segments witnessed an improving trend over the second quarter.
Mark Read, Chief Executive Officer of WPP, said, “WPP continues to demonstrate its resilience in a challenging market. We have maintained our new business momentum as clients seek out our creativity and our skills in media, technology, data and ecommerce. This month, Uber joined a growing list of major assignment wins that includes Alibaba, Dell, HSBC, Intel, Unilever and Whirlpool, and we continue to lead the new business rankings. We have also renewed and expanded our relationship with Walgreens Boots Alliance to encompass its data- and technology-driven marketing strategy.
“Given the tightening of Covid restrictions around the world and uncertainty in the global economic outlook, we remain cautious about the pace of recovery. It is important that we maintain our strong financial position and we are on track to achieve cost savings towards the upper end of our £700-800 million target.
“Our people have done a superb job in serving our clients, largely working from home, but the events of 2020 have of course created new pressures for everyone. We have increased our investment in employee support services, with a particular focus on mental health and well-being, and this will be an ongoing priority for our leadership.”