WPP organic growth ahead of forecast

Sir Martin Sorrell’s WPP has seen organic growth for the third quarter of 2013 recorded at 5% this week – ahead of forecasts – representing a 2.7% acceleration on Q2, according to results released on Thursday.

The company made revenues close to $8 billion for the first nine months, compared with $5.4 billion last year.

While some peers of the group have seen growth in emerging markets falter, WPP has shown strength in these areas with growth from 5.2% in Q2 to 5.8% in Q3. Europe has also now returned to positive growth and North American growth is accelerating.

The UK also reported strong growth at 8.1%, compared with 5.4% in the previous quarter, supported by digital.

By business line, Advertising & Media outperformed (up 6.6%), Data gross margin growth accelerated (up 2.4%), PR remained weak (down -0.9%) but grew on the last quarter, and digital grew 8% – now accounting for 35% of revenues.

WPP expects Q4 growth to be similar to the first nine months, up 3.3%, partly reflecting stronger competition and an improvement in Asia offset by slower growth in the UK and Europe.

Source: Bank of America Merrill Lynch.