WPP like-for-like revenue growth slows

WPP has reported a like-for-like revenue growth of 4.7 per cent in the third quarter of 2011, down from 6.7 per cent in the first quarter and 5.6 per cent in the second quarter.

WPP’s branding and identity, healthcare and specialist communications sector, which features consultancies including Fitch, Landor and The Brand Union, outperformed the group as a whole, with like-for-like third quarter revenue growth of 6.8 per cent.

The group says its like-for-like revenues are now up by 5.4 per cent and gross margin is up by 6.4 per cent in the first quarter of the year.

The group says, ‘Although there has been some slowdown in the growth rate for the United States, this has been largely counter-balanced by fast growth in the United Kingdom, Asia Pacific, Latin America, Africa and the Middle East and central and Eastern Europe.’

It adds, ‘Although it is too early to compile or estimate budgets for next year, despite current uncertainties, the prospects do not look dire.

‘Advertising expenditure for 2012 should be further buttressed by the promising London Olympics, the European Football Championships and the United States presidential election, all of which should add another 1 per cent or so to spending levels, as usual in a maxi-quadrennial year.’

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