Global advertising group, WPP has reported a strong start to 2005, seeing further growth in revenues, profits and margins following a strong performance in 2004.
The US advertising market is continuing to grow, signalling a continued recovery, while Latin American remains the fastest growing region. Asia Pacific is reported to be strong across the region, with China and India leading the way.
Despite a difficult trading climate, Western Europe is shown to have stabilised, while WPP’s UK division has improved.
Worldwide revenues for the group were revealed to be 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 WPP Revenues Rise With Addition Of Grey).
Geographically all regions showed double digit growth, USA revenues for the period were up by over 22%, with the UK rising by 14% and continental Europe by 21%. Asia Pacific, Latin America, Africa and the Middle East enjoyed an increase of almost 25%.
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.
Earlier this year, WPP, showed a strong performance for 2004, announcing a 15% increase in profits for 2004 to £546 million (see WPP Reports Good 2004).
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