WPP reveals drop in Q3 revenue

WPP (LON: WPP) has revealed a 9.8% fall in revenue for the third quarter to £2.97m.

Like-for-like sales fell 5.5% to £2.97bn, however, the drop was smaller than the 11.5% fall in the second quarter.

“WPP continues to demonstrate its resilience in a challenging market. We have maintained our new business momentum as clients seek out our creativity and our skills in media, technology, data and ecommerce,” said chief executive Mark Read.

“This month, Uber joined a growing list of major assignment wins that includes Alibaba, Dell, HSBC, Intel, Unilever and Whirlpool, and we continue to lead the new business rankings. We have also renewed and expanded our relationship with Walgreens Boots Alliance to encompass its data- and technology-driven marketing strategy.

“Given the tightening of COVID restrictions around the world and uncertainty in the global economic outlook, we remain cautious about the pace of recovery. It is important that we maintain our strong financial position and we are on track to achieve cost savings towards the upper end of our £700-800 million target.”

WPP said it has seen improvement in North America as clients are returning to spending more on media ads.

Shore Capital analysts said in a note: “Notwithstanding continuing uncertainty over short-term advertising spend, we are encouraged by the momentum flagged in this morning’s update, continue to view WPP as a quality business and like the way in which it is been repositioned.”

WPP shares (LON: WPP) were down 3.25% in Thursday morning trading.