WPP has released its first-quarter trading results, reporting a strong start to the year continuing the positive momentum built up through 2021.
The advertising company reported that revenue was up 6.7% at AUD $5.458 (£3.1 billion), while on a constant currency basis, revenue was up 6.4% year-on-year.
Like-for-like (LFL) growth, excluding the impact of currency, acquisitions and disposals, was 8.1%.
Revenue less pass-through costs in the first quarter was up 10.3% year-on-year to AUD $4.577 (£2.6 billion), and up 10.0% on a constant currency basis. Excluding the positive net impact from acquisitions and disposals, like-for-like growth was 9.5%.
The report noted that the top five markets Q1 LFL revenue less pass-through costs: USA +8.9%, UK +8.1%, Germany +16.1%, China +11.9%, India +25.1%.
It also looked at the impact of the war in Ukraine and noted that 200 of their employees in war-torn country have shown extraordinary resilience and bravery in the face of the horrific attack on their country, and that WPP continue to be inspired by their example and the outpouring of support from their colleagues in the region and worldwide.
“We are in constant contact with our leaders in Ukraine to provide financial and other forms of practical assistance for our employees,” the report said.
“WPP has partnered with UNHCR, the UN Refugee Agency, to run an emergency fundraising appeal to help people forced to flee their homes in search of safety in other parts of Ukraine or neighbouring countries, raising over $150 million so far, including over $1.3 million from our employee match-funding programme.”
It added that the board of WPP concluded early in March that their ongoing presence in Russia would be inconsistent with our values as a company and have subsequently reached agreement to divest their businesses there.
Russia represented approximately 0.6% of the advertising company’s revenue less pass-through costs in 2021.
Mark Read, chief executive officer of WPP, said: “The year has started very well with continued momentum from 2021 resulting in strong growth across all businesses and regions. Demand is strong for our services, particularly in digital media, ecommerce, data and marketing technology.
“The war in Ukraine has created an appalling humanitarian crisis. We continue to support our people in Ukraine, many of whom are now displaced, with financial and practical assistance.
“Our partnership with the UNHCR on their emergency fundraising appeal has generated $150 million to date, including over $1.3 million from our employee match-funding programme. On 4 March, we announced that we would exit the Russian market, and we have now reached agreement to divest our businesses there.
“We continue to see strong demand for our services from our clients and to invest in the many opportunities for growth driven by the digital transition, including Choreograph and the recent launch of Everymile.
“As a result of a strong first quarter, we now expect our growth to be in the range of 5.5% to 6.5%, up from around 5% at the start of the year. We remain very mindful of the impact of the broader macroeconomic environment on our business and will respond quickly to any changes as the year progresses,” he added.