WPP India's LFL revenue up 7.3% (YoY) in Q3FY23 owing to strong media performance

Advertising giant, WPP, has registered a 7.3% spike YoY in its LFL revenue coming from India, which is one of its top five markets internationally, in Q3FY23. However, on a year-to-date basis, the LFL revenue coming from India was up 2.8% on a yearly basis.

As per the holding company, the Indian market’s growth was driven by strong new business momentum, particularly in media and the CPG sector.

Apart from India, the other countries included in the top five markets for WPP include USA, Germany and China, where the LFL revenue dipped by 4.2%, 3.8% and 4.2% on a YoY basis in contrast to the UK where the same went up 1.1%.

On the global level, WPP clocked in a Revenue of £3,508 million which is 1.8% down on a reported basis and 2.3% up when taking into consideration the LFL revenue on a YoY basis.

The Revenue less pass-through cost of the holding company also stood at £2,837 million, which is 5% down YoY on reported basis and 0.6% down on LFL basis.

The advertising giant’s LFL revenue less pass-through costs growth from Global Integrated Agencies was 0.1% in Q3FY23, with integrated creative agencies declining by 1.1% YoY and  GroupM growing by 1.6% YoY with low-single digit growth in the US and UK.

Additionally, the holding company also won $1.4 billion worth new businesses such as Estée Lauder (Media- China), Hyatt (Creative- Global), Lenovo (Creative-Global), Nestle (Media- Europe), Unilever (Media- Australia and New Zealand), Verizon (Creative- North America) and IndiGo (Creative- India) amongst others in the quarter ended September 30, 2023.

In its regulatory filing, WPP also mentioned that two of its recent moves- launch of VML as  world’s largest creative agency with world-class creativity and deep expertise in commerce, data and technology along with further integration of GroupM with common products and single technology platform, streamlining of operations and back-office functions supporting client-facing agencies are expected to drive stronger revenue growth and net annualised cost savings of at least £100m in FY25 with a part-year benefit in FY24.

Commenting on the quarterly update Mark Read, Chief Executive Officer, WPP, said, “In a world being rapidly reshaped, we need to continue to evolve our offer to clients and simplify our business. I am excited by the creation of the world’s largest creative agency, VML, and the continued evolution of GroupM. Both these developments will strengthen our offer to clients, simplify the integration of our services and maximise the returns on our ongoing investments in AI and technology.”

“Our top-line performance in Q3 was below our expectations and continued to be impacted by the cautious spending trends we saw in Q2, particularly across technology clients with more impact from this felt in GroupM over the summer than the first half,” he added.

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