Global advertising group, WPP, is expected to report an upturn in profits resulting in a boost in confidence in the media sector.
According to industry speculation the group will reveal, at the end of the week, an increase of 25% in its profits for the first half of 2005, reaching £250 million. Revenues for WPP are expected to be up by 20% for the six months to the end of June, hitting £2.4 billion.
Latin America is expected to be performing well, resulting from a sharp rebound in the Argentinean economy, combined with continued growth in Mexico and Brazil.
WPP is predicted to reveal a rise in first-half revenues in China of between 20 and 25%, being boosted by recently winning a major account from China Telecom.
These results follow the group’s strong start to 2005. In May, WPP claimed worldwide revenues were up by over 20% year on year for the first five months of 2005, reflecting strong organic growth and the contribution from the newly acquired Grey Global (see Interpublic To Defend General Motors Account).
WPP reported average net debt for the first five months of the year to be down £130 million, or 15% like for like, to £740 million, compared to £870 million in 2004 (see WPP Reports Strong Start To 2005).
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