With WPP’s preliminary results for 2022 coming out, it is evident that India continues to be amongst the top two markets for the global ad agency which is a house to various integrated networks and specialist agencies including AKQA, Ogilvy, VMLY&R, Wunderman Thompson, GroupM, Mindshare, Wavemaker, etc.
In its full-year and Q4 update, the holding company highlighted that it has posted strong performance across major WPP agencies which saw continued strength as GroupM posted a LFL revenue less pass-through costs growth of 9.1% along with Global Integrated Agencies and Specialist agencies delivering 5.0% and 5.6% LFL growth respectively.
The FY and quarterly update also saw WPP’s reported revenue grow by 12.7% and LFL revenue up by 6.7% on a YoY basis.
Unlike China which saw a decline of 8.4%, WPP’s LFL revenue less pass-through costs saw a YoY growth of 6.9% as the ad giant saw good performance in Q4 in major markets like UK which saw a growth of 12% followed by India at 8.5%, Germany at 4.9% and US at 3.5%.
As per Mark Read, Chief Executive Officer, WPP, the global ad agency has delivered strong growth in 2022, despite the macro challenges, reflecting the priority placed by its clients on investing in communications, customer experience, commerce, data and technology.
“The competitiveness of our offer drove net new business of $5.9 billion in 2022, including new assignments with Audible, SC Johnson, and Verizon among many others and the quality of our work was recognised at the Cannes Lions Festival of Creativity where WPP was named Creative Company of the Year,” he added.
Furthermore, Read also went on to add that WPP’s transformation is now delivering measurable results as the global ad agency has grown like-for-like net sales at a compound average rate of 3.2%, including 3.3% in North America, while improving its headline operating profit margin by 40 basis points over the past three years.
“Our adjusted net debt has declined from over £4 billion at the end of 2018 to £2.5 billion, while over £3.4 billion has been returned to shareholders via share buybacks and dividends,” he emphasised.
Sharing his views on the 2023 guidance, Read stated, “We enter 2023 in a strong financial position with good momentum from new business and the many opportunities ahead of us. While there will no doubt be challenges, the continued need for major companies to build brands, sell products, reinvent and transform their business, understand their data, invest in technology and exploit the potential of AI remains, as does their need for modern partners who can help them navigate this new world.”