WPP Q3 revenue up 5.9% at ?2.927 billion

MUMBAI: UK-based advertising behemoth WPP reported a 5.9 per cent growth in revenues in Q3 2015 at ?2.927 billion.

In US dollar basis, revenues fell 1.6 per cent to $4.533 billion, while it was up 17 per cent in euros to €4.075 billion. In Japanese yen, revenues were up 15.4 per cent to ?554 billion.

The company’s third quarter constant currency revenue was up 7.9 per cent (like-for-like revenue up 4.6 per cent). Despitesoftening in the United Kingdom, WPP’s like-for-like revenue growth in the third quarter continued at similarly strong levels in the US.

Net sales in Q3 stood at ?2.518 billion, which was up 4.2 per cent on a reported basis and 6.1 per cent in constant currency. Like-for-like net sales went up 3.3 per cent, compared to 2.3 per cent in the first half, partly the result of easier comparatives, with the gap compared to revenue growth less in the third quarter than the first half, as the scale of digital media purchases in media investment management and data investment management direct costs continued at a similar slightly lighter level to the second quarter.

Nine months reported revenue was up 6.5 per cent at ?8.766 billion (approximately $13.4 billion).

While the company’s nine months constant currency revenue was up 6.9 per cent, the nine months constant currency net sales were up 5.2 per cent.

Operating margin for the nine months period were up 0.5 margin points in constant currency, 0.3 margin points in reported and targeted to be up 0.3 margin points in constant currency for full year in line with objective.

WPP’s net new business in Q3 was at ?1.9 billion pounds, whereas for the first nine months it stood at ?3.312 billion, resulting in the number one position in all net new business tables. Results to date in the tsunami of largely United States based media investment management reviews have been highly satisfactory with major retentions and wins and limited losses, and with significant opportunities still to be decided, where we have relatively limited exposure.

The company saw constant currency revenue growth in Q3 in all regions and business sectors, with particularly strong growth geographically in North America, the United Kingdom and Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, and functionally in advertising and media investment management and sub-sectors direct, digital and interactive and specialist communications.

WPP’s average net debt for the first nine months increased by ?403 million to ?3.436 billion compared to last year, at 2015 constant rates. This continued to reflect significant incremental net acquisition spend and share repurchases of ?374 million in the twelve months to 30 September, 2015, compared with the previous twelve months, more than offsetting the improvements in working capital over the same period.

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