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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).
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
Why financial planning always plays a crucial role in every PR firm’s success.
Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
Public Policy Holding Company registered 24.1 percent growth to a record $135M during the past year, which included the results of the March 1 acquisition of Multistate Assocs.
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