WPP Group’s global growth has slowed in Q3 2006, with revenues rising by 4.6% to £1.4 billion. The company cites the slowdown on the UK and Eastern Europe markets as the cause of its subdued performance.
Over the first nine months of the year growth was slowest in the UK, up around 5%, compared with 10% growth in North America and a rise of over 20% in the Asia Pacific, Latin America and Africa and the Middle East regions.
“The group continues to focus on its strategic objectives of improving operating profits by 10% to 15% per annum; improving operating margins by half to one margin point per annum; improving staff cost to revenue ratios by 0.6 margin points per annum; growing revenue faster than industry averages; developing creative leadership and stimulating co-operation among group companies,” said the statement.
However, WPP said that its prospects “remained good” for the remainder of 2006 and that over £1 billion of new business was won worldwide during the past quarter.
The group’s work in communications services, public relations and public affairs showed the strongest growth, at 12%, while branding and identity, healthcare and consultancy enjoyed increases of 8%. Advertising and media investment management revenues rose by more than 4%.