WPP Reports Strong Growth
WPP Group has today reported interim results which show pre-tax profits rising 40% to £68.1 million and revenue increasing by 12.7% to £833.2m from £739.4m.
The UK businesses accounted for 19% of the Group’s total global revenue and revenue growth in this market was 3%, the lowest of all WPP’s regions. The Asia Pacific region’s revenue growth was 15% and accounted for 18% of the Group’s total revenue, while North America had revenue growth of 14% and accounted for 43% of WPP’s total revenue. Over the past two years WPP has seen its underlying revenue steadily grow, by at least 1% every six months.
It can also be seen that advertising still remains WPP’s main revenue earner, though the greatest growth in revenue came from specialist communications.
Revenues By Marketing Services Sector
| Marketing Services | Revenue as % of total Group | Revenue growth % |
|---|---|---|
| Media Advertising | 54 | 9 |
| Market Research | 16 | 10 |
| Public Relations | 7 | 9 |
| Specialist Communications | 23 | 12 |
Compared to other major advertising groups, WPP’s results are one of the strongest. CIA’s financial figures (on today’s Newsline) showed greater growth, though the figures were smaller: turnover rose 56% to £379m with profits rising 103% to £3.4m. Cordiant’s performance is also improving: its results *(Newsline 06/08) show it has turned a loss of £29.5m into a profit of £15.5m, though revenue dropped slightly from £374m to £365.8m.
* MediaTel subscribers only
WPP: 0171 408 2204