WPP beats forecasts with 5 percent organic growth

LONDON Thu Oct 24, 2013 2:09am EDT

LONDON Oct 24 (Reuters) - WPP, the world's largest advertising company, posted third quarter organic revenue well ahead of expectations, as it stole a march on its two biggest rivals which are locked in the process of merging.

The British firm, run by Martin Sorrell, said like for like growth was up 5 percent in the third quarter, a clear acceleration from the 2.4 percent growth it reported in the first half. It did not change its outlook.

The group said the improved trading was due to an easier comparative last year and improvements in North America, Britain and Latin America.

Analysts had been expecting the group to report organic growth for the three months to the end of September of 3.8 percent. Several had suggested that WPP could do well as its two biggest rivals Omnicom and Publicis are hammering out the details of their merger.

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Comments (1)
mcaff wrote:
Nice headline but here’s the full story:

“WPP expects like-for-like revenue and gross margin growth of around 3% and operating margin improvement of 0.5 margin points in 2013.

The company expects to achieve these by virtue of its leading position in new markets and new media, and its deep consumer insight.”

Operating margin improvement of 0.5%.

In other words, we keep this ship afloat through acquisitions but for how long is anyone’s guess.

Oct 25, 2013 2:43pm EDT  --  Report as abuse
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