WPP reports revenues up 7% at £3.2 billion

Speaking at the annual general meeting in Dublin at noon, the chairman of WPP said: “In the first four months of 2012, reported revenues were up 7.0% at £3.228 billion. Revenues in, reflecting the slight weakness of the pound sterling against the US dollar more than offset by its strength against the Euro. On a like-for-like basis, excluding the impact of acquisitions and currency fluctuations, revenues were up 4.0% compared with the same period last year.

“The pattern of revenue growth in 2012 is generally similar to both the first quarter of 2012 and full year 2011, with continuing improvement across all sectors and geographies, but at lower levels of overall like-for-like growth. Advertising and media investment management and branding & identity, healthcare and specialist communications (including direct, digital and interactive), as in 2011, were the strongest services sectors, with consumer insight revenues more stable, as in the first quarter.

“The pattern seen in 2011, with slower growth in the mature markets of the United States and Western Continental Europe, has mostly continued, with the faster growing markets of Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe continuing to be the strongest, as seen in the first quarter. We have just received the “flash” figures for May, which indicate a similar overall pattern to the first four months.”

It was found that in constant currencies, advertising and media investment management was the strongest performing sector with revenues up 8.2% and like-for-like growth of 6.4%; while public relations and public affairs revenues were up 7.0% and up 1.7% like-for-like; and WPP’s branding and identity, healthcare and specialist communications businesses grew at 10.0% with like-for-like growth of 3.5%.

While seeming positive for the rest of 2012, the agency suggested that 2013 ‘is likely to be more challenging’.