LONDON — WPP has reported mixed results for its PR firms including Burson, FGS Global and Ogilvy, which saw revenue rise 1.5% on a like-for-like basis during Q2 2024 but dip by 0.9% during the first half of the year.

In its Q2 earnings report, WPP said it saw double-digit growth from FGS Global, which the holding company announced Wednesday it will be selling to minority shareholder KKR for $775 million.

Those gains, however, were mitigated by Burson, which saw “continued negative impact” from the loss of Pfizer business in 2023 and lower client spending due to economic and political uncertainty. Burson,  created by the merger of BCW and Hill & Knowlton, officially launched in June.

This follows a 3.3% decline in LFL revenue for the PR division – which represents 10% of WPP's business – in Q1 2024, and overall growth for WPP’s PR agencies for the year of 1.4%.

Across WPP, LFL revenue declined 1% to £5.5 billion, with revenue down 3.6% on an as reported basis. North America business was up 2.6% in Q2, though down 1.4% in the first half of 2024 due to client losses the previous year. At the half-year mark, business was down 4.4% in Asia;  up 1.7% in continental Europe; and down 2.6% in the UK.

Said WPP CCO Mark Read:

“At our Capital Markets Day earlier this year we set out our strategy to build on and improve the competitiveness of WPP’s offer. I am very pleased with the progress we have made in the past six months against each of our strategic objectives, particularly our continued investment in AI, the creation of VML and Burson, and the simplification of GroupM. We are strengthening our offer for clients while building a more efficient company.

“Our second quarter performance delivered sequential improvement in net sales10 with continued growth in GroupM, Ogilvy and Hogarth and sequential improvement at Burson, VML and our Specialist Agencies. Importantly, we also saw North America return to growth in the second quarter. That said, we have seen pressure in China and in our project-related businesses which, together with an uncertain macro environment, has led us to moderate our expectations for the full-year.

“The sale of our stake in FGS Global is an excellent outcome less than four years after its creation from three separate businesses within WPP. It will allow us to focus and invest in our core creative transformation offer while significantly strengthening our financial position.

“As a team, our priority continues to be improving our competitiveness by delivering a modern, global, creative and integrated offer for our clients. The steps we have taken since January to integrate our offer, bring in new talent and invest in AI represent strong progress towards delivering on our medium-term financial targets and to shareholders.”