WPP reports 4% revenue rise

WPP Group has reported a 4 per cent increase in revenues for its branding and identity business, along with healthcare and specialist communications, for the first six months of 2007, compared with the same time last year.

According to the group’s interim results, this sector’s revenue increased from £780m to £811m.

However, this is in contrast to WPP’s five-month update, in which the group reported an increase in revenues of 9 per cent for this part of the business, compared to the same period the previous year.

Several companies in the branding and identity sector were singled out for their good performances, including Enterprise IG, Addison and The Partners.

WPP has said pre-tax profits for the group rose 2.4 per cent to £294.1m from £287.1m, while its revenue increased by 2 per cent to £2.92bn.

As revenues from branding and identity, healthcare and specialist communications rose by 4 per cent, the group’s advertising and media investment management sector grew by just 0.7 per cent.

Public relations saw the strongest sector growth at 7.8 per cent, while information, insight and consultancy dropped by 1.6 per cent.

The strongest growth was seen in Asia Pacific, Latin America, Africa and the Middle East, with a 6.1 per cent rise in revenues. Continental Europe increased by 4.1 per cent, United Kingdom by 3.7 per cent, while North America was down by 2.1 per cent.

WPP has recently made several small- to medium-sized acquisitions including its purchase of 24/7 Real Media in July, and, last December, Enterprise IG’s acquisition of Indian brand consultancy Ray & Keshavan Design.

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