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WPP PLC on Friday upped its annual outlook as both interim revenue and profit rose by double-digit percentages, and it also lifted its dividend by 20%.
For the six months that ended on June 30, the FTSE-100 advertising agency said pretax profit rose 6.3% to £419 million from £394 million a year earlier.
Revenue increased 10% to £6.76 billion from £6.13 billion.
WPP said it saw a strong client demand across most segments and regions. It said revenue less pass-through costs amounted to £5.51 billion, up 13% from £4.90 million a year earlier, and up 8.9% like-for-like.
‘We have enjoyed a strong first half, with broad-based growth across our creative, media and public relations businesses. This reflects the improved competitive position of our creative businesses, with their growing capabilities in commerce, experience and technology, our continued strength in media and the resurgence in demand for strategic communications advice from our public relations agencies,’ Chief Executive Officer Mark Read said.
Net finance costs decreased by 24% to £89.0 million from £117.0 million a year earlier as a result of ‘higher investment income, lower bond debt and higher interest earned on cash,’ WPP explained.
WPP upped its interim payout by 20% to 15.0 pence per share from 12.5p a year prior.
‘Performance in the first half of 2022 has been strong, and we expect continued growth in the second half,’ the firm said.
Looking ahead, it now expects organic revenue for 2022 to rise between 6.0% and 7.0% for 2022. It had initially guided for a 5.5% to 6.5% rise.
Read added: ‘Our clients are continuing to invest in WPP's services, which reflects our attractive industry exposure in technology and healthcare, our broad global footprint, and the importance of what we do for their businesses. The actions we have taken over the last four years leave WPP much better positioned with a more uncertain economic environment ahead.’
Shares were down 7.4% at 827.50 pence each on Friday morning in London.
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