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LONDON (Alliance News) - Media buying giant WPP PLC reiterated its outlook for 2016 amid a rise in reported billings and revenue in the first quarter of the year.
The FTSE 100-listed group said revenue grew 11% year-on-year in the quarter to the end of March to GBP3.08 billion from GBP2.78 billion, and grew 4.6% in dollar terms to USD4.40 billion from USD4.21 billion.
Reported billings for the quarter grew 8.3% year-on-year to GBP11.92 billion.
In constant currencies, revenue grew 9.0%, and by 5.1% on a like-for-like basis, which also strips out the impact of acquisitions, WPP said.
Net sales were up 8.1%, or 6.7% at constant currency and 3.2% like-for-like. WPP views net sales as the most meaningful and accurate reflection of its top line growth.
The company said it had seen like-for-like growth in all of its regions and business sectors, particularly seeing strong growth in the US, the UK and in western Europe. In terms of sectors, advertising and media investment management segments performed well, as did direct, digital and interactive advertising.
North America was the strongest performing region, with revenue up 9.2% at constant currency, with media investment management and direct, digital and interactive performing well. In the UK constant currency growth of 8.2% was weaker than in the first quarter of the previous year, but stronger than the second half and final quarter of 2015.
Also of note, like-for-like net sales growth was lower as Brazil, Russia and China slowed. WPP noted that in Mainland China parts of its advertising and media investment management and data investment management sectors came under pressure against strong comparatives in the previous year.
WPP reiterated its full-year guidance of like-for-like revenue growth of well over 3% and net sales growth of over 3%, with a target operating margin to net sales improvement of 0.3 margin point, excluding the impact of currency.
WPP said it had gained a total of GBP1.15 billion in net new business wins in the quarter, compared to GBP624 million in the same period last year.
It completed 26 transactions in the quarter, including 8 acquisitions and investments in new markets.
WPP noted that, despite the encouraging results for the first quarter of 2016 and good prospects for the rest of the year, clients generally remain cautious.
It highlighted some geo-political concerns, in particular the upcoming referendum on the UK's membership in the European Union in June, saying it is generally agreed by both sides of the debate that a vote to leave the EU will result in gross domestic product weakness in the UK, EU, and possibly globally, "at least in the short-term or mid-term".
Other risks WPP highlighted include significant political and economic uncertainties in Brazil, Russia and China, but said it remains "unabashed bulls" on all three.
Shares in WPP were down 1.9% at 1,586.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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