Advertising giant WWP have reported a revenue increase on the back of the weakening pound and strong performance in Europe and North America.
Revenue rose 23.4 percent to £3.61 billion in the third quarter, with like-for-like net sales rising by 2.8 percent and topping initial analyst projections by 0.1 percent. The results were bolstered by strong performances in Western Europe and in North America.
WPP noted an increase in net sales growth in North America to 2.6 percent on a like-for-like basis. Lower growth trends in the U.S. have taken their toll on other advertising holding companies such as Omnicom Group Inc. and Publicis Groupe SA, who have also reported their revenue results this month. Both companies attributed this to uncertainties arising from the upcoming presidential election.
“We’ve not been affected by some of the things that our competitors talked about,” Mr. Sorrell stated. “We haven’t seen any difference between this election and any other election. If anything it has been stimulative and not a drag.”
However, WWP also noted evidence of a post-Brexit slowdown for its UK business. According to its figures, U.K. comparable net sales slowed in the three months till September, as clients restrained spending. The company referred to this as “perhaps the first signs of Brexit anxiety.”
“Every time I talk to a client the first thing that comes out of their mouth is ‘Brexit’,” WPP Chief Executive Martin Sorrell said in an interview. “There is a lot of uncertainty and in these circumstances clients are unwilling to invest.”
Conversely, since the UK’s referendum vote, the company has initiated expanded growth strategy for Germany, France, Italy and Spain. These four countries constituent their top 10 markets globally.
WPP is ranked as the world’s largest marketing firm in respect of revenue. Shares in the company were recently up 3.4 percent in Monday morning trading.