Dow Jones Newswires: WPP profits rise as ad giant trims costs, raises forecasts

by | Aug 5, 2022 | Stock Market

WPP PLC
WPP,
+1.25%
said Friday that first-half pretax profit rose on broad growth and that it has raised its organic growth guidance for the full year. The London-based advertising group said pretax profit was 418.6 million pounds ($509 million) compared with GBP394.4 million a year earlier.

Revenue for the period was GBP6.76 billion compared with GBP6.13 billion in 2021. Revenue less pass-through costs rose to GBP5.51 billion from GBP4.90 billion. For the second quarter, like-for-like revenue less pass-through costs fell 6.1% in China as the market was affected by lockdowns. The transformation plan, designed to achieve GBP600 million in annual cost efficiencies by 2025, is on target to achieve an annual run rate of GBP300 million in efficiencies this year, it said. WPP said it booked $3.4 billion of net new business billings in the first half, compared with $2.9 billion in the first half of 2021. Guidance for full-year for organic-growth was lifted to 6.0%-7.0% from 5.5%-6.0% previously. The board declared an interim dividend of 15 pence a share, up from 12.5 pence a year earlier. “The actions we have taken over the last four years leave WPP much better positioned with a more uncertain economic environment ahead,” Chief Executive Mark Read said. Write to Kyle Morris at kyle.morris@dowjones.com

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