WPP Upbeat As Revenues Continue To Rise
UK advertising giant WPP today announced an increase in revenues for quarter one 2004 of nearly 6%. The rise puts the company’s revenues at £960 million thanks to the third consecutive quarter increase for the Group, which includes a 12% rise to UK revenue.
The trading update shows that all regions had a double-digit revenue growth except for Continental Europe. Asia-Pacific, Latin America, Africa and the Middle East experienced the largest growth, up over 28%. North America grew by 11% and Continental Europe by 7%.
All business sectors grew; revenue for advertising and media investment management was up over 14% for this quarter, while the public relations and public affairs sector, which was hit hardest by the recession was up by 6%.
New business billings won during the first quarter totaled £514 million ($926 million) and there are an increasing number of new business opportunities available, as clients turn their attention to managing for growth and the top line, rather than focusing totally on costs says WPP.
The statement says that during the first quarter, both profitability and operating margin were above budget due to strong revenue conversion. Full-year margin forecasts are in line with the Group’s margin target for 2004 of a 13.8% increase.
During the first quarter of 2004, WPP completed acquisitions or increased equity interests in advertising and media investment management in Germany, Sweden, Indonesia and South Korea and in public relations & affairs in the United States and the United Kingdom.
Looking forward, the Group continues to focus on its key objectives of improving operating profits and margins, as well as developing its portfolio in high revenue growth geographically and functionally.
WPP: 020 7408 2204 www.wpp.com
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