Familiar Pattern to Q2 Results for WPP, DIM

WPP has reported Q2 revenue of £3.46bn, up 3.5% in like-for-like (LFL) terms. Net sales, the group's preferred measure, rose 4.3% on the same basis. As in previous quarters data investment management (DIM) lagged other divisions, with LFL revenue down -0.4% and net sales up 2.0%.

The net sales figures are a slight improvement on the first quarter, when the group reported a rise of 3.2% and DIM a miniscule decline of -0.1%. WPP said all DIM regions except the United Kingdom, which was flat, showed net sales growth, with Latin America up more than 5% and Asia Pacific almost 4%. Reportable net sales margins improved strongly, the group said, due to good cost control and the benefit of restructuring in 2014 and 2015.

The group's largest division, Advertising and Media Investment Management, performed strongest with LFL revenue growth of 5.4% in the second quarter - though this was down from 7.9% in the first quarter. The two other divisions - Public Relations and Public Affairs; and Branding and Identity, Healthcare and Specialist Communications - both saw LFL and net sales growth of between 3 and 4 percent.

First half operating profit for the group was £769m, a margin of 13.7% and up £100m on a year previously, while DIM contributed £125m, a margin of 13.5% and up from £101m.

In terms of outlook, the group states: 'we see no reason why revenues and net sales cannot continue to grow at well over 3% and over 3% respectively in 2017, a very similar pattern to 2015 and 2016'.

Full details are at www.wpp.com/investor .