WPP Reports Q3 Revenue Growth of 3%

Ignoring currency fluctuations, rise was actually 7%

London-based WPP Group, battling strong foreign exchange headwinds, reported revenue growth of 3.1 percent in the third quarter. Meanwhile, like-for-like growth, which removes the impact of currency swings, jumped 7.6 percent.

WPP said net sales growth dropped 1 percent, with like-for-like growth up 3 percent.

Overall revenue rose to $4.4 billion in the period. Revenue was hit by a 7.5 percent decrease because of currency, while net sales saw a 7.3 percent decline.

WPP said the U.K. was the region showing the strongest revenue growth, with a like-for-like increase of 10.2 percent. Media operations there grew "particularly strongly," according to the company.

Among operating segments, advertising and media led results, showing an increase of 11.7 percent in reported income and a 17.1 percent hike in like-for-like results. The holding company cited strong growth at operating units Ogilvy & Mather and Grey in the quarter and performance in geographic areas like Asia Pacific, Latin America and Africa. WPP said global like-for-like media revenues were up "very strong double-digits and net sales up double-digits" in the quarter. Net sales in North America, the U.K. and Africa showed strong growth.

The industry’s largest holding company was the last to report earnings, with WPP's organic growth topping competitors like Omnicom which reported a 6.5 percent increase; Interpublic,  showing a 6.3 percent rise; and Publicis, posting just 1 percent.

Publish date: October 31, 2014 https://stage.adweek.com/brand-marketing/wpp-reports-q3-revenue-growth-3-161127/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT