WPP Q3 revenues register a 5% rise

WPP Q3 revenues register a 5% rise

	Published : Fri, 28 Oct 2005 19:05 By : Cedric Benson Print this Story

WPP Group PLC, the world's second largest advertising company, announced a rise in its third quarter revenues. The like-for-like revenue increased by almost 5 per cent in the quarterly leading to September end. The parent company of agencies like JWT and Ogilvy & Mather Worldwide expects a full-year turnover of 4-5 per cent, as against its previous target of 3-4 per cent.

Revenues increased to £1.348 billion in the quarterly ending September as compared to £1.067 billion over the same period last year. It got a shot in the arm with the acquisition of US rival Grey Global for £730-million.

The firm is expecting that spending on advertising would rise in 2006 before the World Cup and Winter Olympics.

WPP is currently considering a joint bid for Synovate, the research arm of Aegis Group PLC Aegis with US private equity firm Hellman & Friedman. It recently lost business from Coca-Cola, the US drinks giant, and South Korean electronics giant Samsung.Sir Martin Sorell, chief executive of WPP, said his company still continues to hold about two thirds of the Samsung account, which is mainly in media buying and planning.

Sir Martin said WPP was also looking to take advantage of the internet medium for boosting its ad revenues. He said: "If we advise companies where to spend their money and how much they should spend we should move with the flow. We should be able to capture the revenues that flow from making those decisions. If we don't have the ability to advise and counsel them into other avenues, then we won't.”

Revenues in North America rose by 26 per cent and sales from its UK operations increased by almost 10 pct, a WPP release said.

Meanwhile, European revenues were almost 25 per cent higher compared to last year, while Asia Pacific, Latin America, Africa and the Middle East together saw turnover increase by over 25 per cent. WPP maintained that it was 'on track' to meet its operating margin target of 13.7 per cent for 2005.