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.
According to a statement released by the group, revenues were up 12% during the first nine months of 2006, with its operating margin in line with a target of 14.5%, compared with 14% in 2005.
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%.
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