WPP reports £7.23bn H1 revenue as India surges 9.1% amid global challenges

WPP's top ten clients grew by 2.5% in H1, with strong performance in the consumer packaged goods, technology, media and entertainment, and automotive sectors.

Global advertising and marketing services company WPP has unveiled its 2024 interim results, reporting total revenue of £7,227 million for the first half of the year, with revenue less pass-through costs at £5,599 million. Amidst a challenging global landscape, WPP's India business emerged as a standout performer, posting a remarkable 9.1% growth in the second quarter, contrasting sharply with the overall picture.

The robust growth in India comes against a backdrop of mixed results across WPP's global operations. While the company reported overall sequential improvement in like-for-like (LFL) growth in Q2, it has revised its full-year LFL guidance to between -1% and 0%, citing macroeconomic pressures and weakness in the Chinese market.

WPP's Q2 results show a contrasting picture across different regions. North America and Western Continental Europe saw modest growth of 2.0% and 0.3% respectively in LFL revenue less pass-through costs. However, the UK market declined by 5.3%, and the Rest of World category, which includes India, saw a 2.2% decline overall.

The standout performance of the Indian market, with its 9.1% growth, was particularly noteworthy when compared to the sharp 24.2% decline experienced in China during the same period.

In terms of overall financial performance, WPP reported H1 revenue growth of 0.1% on a reported basis and 2.6% on an LFL basis. However, revenue less pass-through costs declined by 3.6% on a reported basis and 1.0% on an LFL basis.

The company's Global Integrated Agencies saw a slight decline of 0.6% in Q2 LFL revenue less pass-through costs, with GroupM growing by 1.4%, offset by a 2.4% decline in integrated creative agencies.

WPP's top ten clients grew by 2.5% in H1, with strong performance in the consumer packaged goods, technology, media and entertainment, and automotive sectors. The technology client sector showed signs of stabilisation, declining by only 1.0% LFL in Q2, an improvement from the 9.0% decline in Q1. New client wins included assignments for AstraZeneca, Colgate-Palmolive, J&J and Government of Canada.

The company also announced significant progress on its strategic initiatives, including the launch of new products and solutions within WPP Open, its AI-powered marketing operating system. Additionally, WPP has agreed to sell its majority stake in FGS Global to KKR at an enterprise valuation of $1.7 billion, which is expected to generate cash proceeds of approximately £604 million after tax.

Despite the challenges, WPP maintained its interim dividend at 15.0p per share. The company's headline operating profit for H1 stood at £646 million, with a headline operating margin of 11.5%, up 0.1 percentage points on a LFL basis.