(Adds details, CEO comments)
LONDON, Aug 5 (Reuters) - WPP, the world's biggest
advertising company, said underlying net sales jumped 19.3% in
the second quarter, beating expectations and taking first-half
growth to 11%, ahead of 2019 as clients ramped up spending in
the COVID recovery.
Chief Executive Mark Read said the second-quarter growth was
its highest on record, as clients reinvested in marketing,
particularly in digital media, e-commerce and technology.
It meant WPP had bounced back to 2019 levels a year ahead of
its forecasts.
"Clients are seeing a strong economic outlook for the second
half of the year and into next year, and they're choosing to
invest in their brands," he said in an interview on Thursday.
"They're shifting a lot of money into digital media," he
said. "We're seeing continued growth in public relations and
public affairs given the importance of employee communications
and corporate reputation."
The British group on Thursday upgraded its full-year outlook
to growth of 9-10%, with a headline operating margin towards the
upper end of the 13.5%-14.0% range.
Shares in the British group are up 58% in the last year,
helped by a surge in demand from clients launching new products
and brands to consumers in advanced economies who are willing to
spend again on items such as luxury goods and domestic holidays.
Its strong performance mirrors that of its peers, with
Omnicom, IPG and France's Publicis all
beating quarterly forecasts in July.
The recovery at WPP, the owner of the Ogilvy, Grey and
GroupM, comes after Chief Executive Mark Read sought to better
combine the group's digital and data capabilities with its
creative work, a new approach that had been demanded by clients.
The pandemic has also enabled it to win work to help
companies build e-commerce and digital offerings when
traditional commerce routes shut suddenly.
(Reporting by Paul Sandle; editing by Guy Faulconbridge)
WPP (WPP)
