WPP Australia revenue picks up but still behind pre-pandemic

Chris Pash
By Chris Pash | 10 August 2021
 
Credit: Brian Matangelo

WPP in Australia hasn't quite seen revenue return to pre-pandemic levels like its UK parent company but it's on the way. 

The local business posted 8.4% growth in the June quarter, according to numbers in WPP's half year market update given in the UK. 

WPP AUNZ was suspended from the ASX in April this year after the UK company took 100% control of the local business.

This has made it harder to track the health of the local business, which had been an indicator for the rest of the industry in Australia.

WPP, the world's biggest advertising group, last week reported strong first half results, returning to pre pandemic levels a year ahead of forecasts.

The global company posted like-for-like revenue up 16.1% in the six months and 26.4% in the three months to June.  LFL revenue less pass-through costs was 11%, about 0.5% higher than the 2019 first half.

Mark Read, global CEO, when briefing analysts about half year results, gave Australian operations a mention.

"And Australia, we saw some recovery in Q2, but still negative on a two-year basis," he says.

"Now, of course, we've brought the business back into 100% ownership. We're very optimistic about driving stronger future performance."

The three months to June had been expected to show a strong lift because it is being compared to the depths of the economic fallout from the pandemic in 2020.

The growth for Australia in the June quarter compared to -20.3% in the same three months in 2020 and was up from -7.6% in the March quarter.

When WPP AUNZ was still publicly reporting its results, net sales were down 14.1% to $612.3 for the full year to December 2020. 

Operating costs were cut by $71 million in 2020 and the benefit in 2021 was expected to be $65 million. 

In the March quarter the local business was reportedly still recovering from the pandemic but the company was expecting a "material improvement" in profitability for the full 2021 year. 

A slide from Read's analyst presentation: 

WPP june q 2021 australia

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