WPP, the world’s biggest advertising company, has turned its back on the coronavirus crisis, declaring a dividend when the rest of the industry is holding its cash.
The company, announcing first half results, says the June quarter looks like it was the toughest period of the year “although we remain cautious on the speed of recovery”.
The comment by CEO Mark Read echoes those of other industry leaders who believe the quarter could be the trough, or low point, of the impact of the pandemic.
Shares in WPP Plc rose 4.7% in London to 653.20 pence.
However, the impact of COVID-19 has been “significant". Revenue was down over the six months by 11.5% to GBP 5.58 billion.
Operating profit for the year was GBP 382 million, down 37.8%.
July net sales fell 9.2%, a “steady improvement” over the second quarter, although performance across markets is volatile.
“Our strategic transformation remains on track but as COVID-19 accelerates the change in our sector, we are accelerating our plans,” says Read.
“We continue to attract new talent, invest in technology and ecommerce, and train our people in the skills they need for the future, with more than 20,000 receiving accreditations from Adobe, Amazon, Facebook, Google and Salesforce this year.
“We are working with our clients to help them get back to business, adapt their marketing strategies at speed and reshape their operations for a new world.”
He says brands are seeing increases in online sales of 100% and more. WPP is supporting eight of its top ten clients on ecommerce strategies.
WPP says it brought in $US4 billion in new business in the first half, including wins from Intel, HSBC and Unilever. Read says the pipeline is strong.
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WPP declared an interim dividend of 10p per share, recognising the “importance of income to many investors”.
The numbers for the six months to June:
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