WPP revenues up 5% despite slow March
Sir Martin Sorrell’s WPP Group, owner of Grey London and MediaCom, has reported first-quarter like-for-like revenue growth of almost five per cent despite trading slowing in March within Western Europe.
The world’s second largest advertising agency reported revenue growth of 14.1 per cent to £1.56 billion as the group remains on course to achieve its full year margin objective of 15.5 per cent. However, its shares dropped five per cent this morning.
The group said that first quarter growth reflected the continued steady overall economic environment, despite the continuing uncertainty of the credit crunch and the slowdown in the US. The UK was the slowest growing region, with revenues up almost 5 per cent.
Asia Pacific, Latin America, Africa and the Middle East are the fastest growing regions for the group, with revenues up over 15 per cent. Continental Europe was up over 5 per cent while Continental Europe was up just over three per cent and Eastern Continental Europe up almost 26 per cent.
The group, which also owns JWT and Ogilvy & Mather, won £564 million of new business during the quarter including Dell, Tui, Look magazine, Visa and United Biscuits.
Last month Sorrell said he expected revenue to grow by around six percent this year, driven by the Olympic Games in China.
The US elections and the Euro 2008 football tournament are also expected to be major events driving growth at the company.
To read a related blog by Arif Durrani visit madcomments.co.uk
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