WPP Insight Revenue Levels Off

WPP has reported third quarter consumer insight revenue of £591m, down from £593m in the prior year period and up just a fraction ( 0.8%) on a like-for-like basis.

For the first nine months of the year, insight revenue climbed 3.3% to £1.78bn.

In a statement, the group said that the pattern of revenue growth seen in the first two quarters had continued into the third, with the mature markets of North America and Continental Europe 'difficult but counterbalanced' by strong growth in the UK and the faster growing markets of Asia Pacific, Latin America, Africa & the Middle East.

CEO Sir Martin Sorrell (pictured) confirmed that global sales growth slowed last month, after increasing by around 3% in July and August and 3.6% during the first half of the year. He also noted slower growth across consumer insight and public relations and public affairs than in the first half, particularly in September.

For the group as a whole, third quarter revenues were up 1.6% to £2.5bn, while for the first nine months, revenue increased 4.2% to £7.5bn.

In the final quarter of the year, the firm is predicting lower revenue growth overall, with an improvement in Asia Pacific and Continental Europe, offset by a weakening in North America and Latin America. Consumer insight is one of the areas which it forecasts will grow less than in the third quarter.

Sorrell says WPP has now reduced its full-year revenue growth outlook from the 3.5% forecast in August to between 2.5% and 3%. As a result, WPP shares began trading 5% lower today at 772.75p.

However, Sorrell says he believes the group will 'continue to outperform' in its sector because of its focus on new media and consumer insight, including data analytics and its application of new technology.

Web site: www.wpp.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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