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| Mark Read |
WPP reported a 12.3 percent decline in first-half revenues to $7.4B as CEO Mark Read wrestled with the negative impact of COVID-19.
The company suffered a $3.4B pre-tax loss, which included a $3.6B impairment charge largely connected to the 2000 acquisition of Y&R.
Consumer packaged goods, technology and pharmaceutical clients, which account for 56 percent of revenues, were either less impacted or slightly enhanced by COVID-19.
Auto, luxury, travel and leisure accounts (22 percent of revenues) were the hardest hit.
WPP’s BCW, Hill+Knowlton Strategies, Finsbury and Ogilvy PR group “held up relatively well,” as clients sought advice on how to engage with their stakeholders, according to Reed.
PR revenues declined 8.1 percent to $298M, though it “outperformed” in North America, but was "down significantly" in the UK.
Assuming there’s no second wave of COVID, Read expects the second quarter will turn out to “to be the toughest period of the year.”
He remains cautious about the speed of the recovery.
More than three-quarters (77 percent) of WPP staffers in China are back in their offices. That's followed by Germany (17 percent), UK (three percent) and US (one percent).
Public Policy Holding Company grew 27.5 percent to $50.1M during Q1, powered by the accelerating contribution from recent acquisitions and a 5.1 percent hike in organic revenues across its three operating segments.
Institutional Shareholder Services advises investors to vote "no" on a compensation package for WPP chief Cindy Rose at the May 8 annual meeting.
FTI Consulting chalked up a 9.5 percent rise in Q1 revenues to $983.3M, powered by gains in its PR, corporate finance and technology segments.
Stagwell reports 4 percent growth in Q1 net revenues to $585M and a record $141M in net new business wins.
WPP reported a 6.7 percent drop to $3.1B in Q1 like-like revenues less pass-through costs. CEO Cindy Rose says 'it will take time to outpace historical losses."
