WPP, the world’s biggest advertising group, is seeking growth by becoming an e-commerce company.
This move includes looking at acquisitions as WPP helps companies with digital sales.
“We are working through how we can expand our e-commerce business,” CEO Mark Read told Bloomberg in an interview. “We’ll think quite expansively about it.”
All the major global advertising groups are switching to digital growth opportunities.
WPP in August, announcing its half year results, declared a dividend at a time when the rest of the industry was holding its cash.
However, the impact of COVID-19 had 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.
Analysts say ad spend is positioned for a recovery in 2021 but the industry will still have to wait until 2022 to match 2019 levels.
In Australia, trhe UK-based WPP plc, has moved to take full control of its local subsidiary, WPP AUNZ.
Minority shareholders are being offered $0.55 a share. WPP currently has 61.5% of the ASX-listed WPP AUNZ
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