WPP's 'DIM' Division Reports 2.1% Revenue Rise

Marcoms giant WPP has reported a 2.1% increase in second quarter revenue in its 'Data Investment Management' (DIM) arm, previously known as the Consumer Insight division. The total figure of £651m reflects growth in all regions except the UK and Western Europe.

In an interim statement, WPP highlighted that the former Consumer Insight division had seen the faster growing markets of Asia Pacific, Latin America, Africa and the Middle East perform almost as strongly as in the first quarter, with like-for-like revenues up over 7%.

In North America, the division reported a 'significant improvement', with like-for-like revenues up almost 5%. TNS and Millward Brown's custom research business, together with call centre operations, performed 'particularly well' in the region.

For the six months ended 30 June 2013, Data Investment Management revenues were up 2.3% to £1.24 billion.

WPP as a whole saw Q2 revenue up 7.1% to over £5.3 billion (H1 2012 - £4.9 billion), while headline profit before interest and tax increased almost 12% to £637m from £570m last year, and profit before tax was up 19% to £427m.

The statement confirms the recent announcement by Group CEO Sir Martin Sorrell (pictured), to the effect that WPP plans to accelerate its strategy of expanding in emerging markets and digital advertising, and now aims to generate at least 40% to 45% of its revenue in these areas by 2018, compared with its previous goal of 35% to 40%.

Responding to last month's news that Publicis and Omnicom are to merge to form the world's largest marcoms network, Sorrell questioned the value of the deal for Omnicom's shareholders and warned about future problems resulting from clients not having been 'properly consulted' prior to the announcement. Speaking to the BBC, he said that the challenge posed by the merger was 'not unwelcome', adding: 'We have been number two before, we've been number two three times before. Being a challenger brand has its virtues, it energises you a bit more.'

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.