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LONDON (Alliance News) - Media buying giant WPP PLC Wednesday said that revenues rose in the first five months of its financial year, while gross margin and profits were ahead of last year and in line with its targets.
The company said the economic pattern for 2014 looks very similar to 2013, albeit with slightly increased client confidence, but warned of a hit to trading from the current strength of sterling.
"All in all, 2014 looks likely to be another demanding year, as a strong pound and weak faster growth market currencies continue to take their toll on our reported results, but if budgets and quarter one revised forecasts are met, 2014 will be another strong year," said Chairman Philip Lader in a statement ahead of WPP's annual general meeting Wednesday.
The advertising and public relations group said that revenues during the period were hit by a strong sterling, but still managed to grow 1.2% to GBP4.43 billion. On a constant currency basis revenues were up 9.8%, while like-for-like revenues were up 7.6%.
"The pattern of gross margin or net sales growth in 2014 is generally similar to the final quarter of 2013 and first quarter of 2014, with some overall further improvement in the last two months and with continuing growth across all geographies and all sectors," said Lader.
WPP said that advertising and media investment management and branding & identity, healthcare and specialist communications continued to be the strongest sectors during the period.
"The mature markets of the US and the UK, showed the strongest growth, with Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe showing an improvement over the first quarter," Lader added.
WPP said it completed a total of 31 acquisitions in the first five months of the year, mostly quantitative and digital, but also in new markets.
WPP shares were down 0.8% at 1,237.91 pence Wednesday early afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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