WPP has reported a 5.3% increase in like-for-like revenues for the six months to the end of June, helped by acquisitions in China and India and faster growth in the US.
WPP posted a pre-tax profit of £338 million, a 6.9% on the same period last year. Its reported revenue rose 2% to £2.9 billion.
The UK reported 2.3% like-for-like revenue growth for the first half, compared with 3.1% in Continental Europe and 5.1% in North America.
The fastest-growing regions were Asia Pacific, Latin America, Africa and the Middle East, with revenues increasing almost 12%.
Direct and digital activities now account for approximately 23% of the group’s total revenues, whilst overall, 53% of the its revenues came from outside advertising and media investment management in the first half of the year.
In a statement, WPP said: “The group’s performance in the first half of the year mirrored the continuing good economic conditions. Western Europe improved, although the UK remains relatively weak.”
However, it said that 2008 should be far better, adding: “As long as the United States economy holds up, 2008 should be a good year too, buoyed by the build up to Beijing 2008 and heavy United States political spending, in advance of a presidential election, which may see Hillary Clinton nominated and elected.”
“2008 should be a bumper year, with the culmination of these two major events and the European Football Championships in Austria and Switzerland.”
WPP recently purchased digital marketing firm 24/7 Real Media for $649 million (£329 million) in a move intended to strengthen its position in the sector (see WPP Acquires 24/7 Real Media).
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