DIM Down 2 Percent While Rest of WPP Grows Again

WPP's Data Investment Management arm has reported a 12.1% increase in third quarter revenue to £655m, reflecting the lower value of the pound. On a like-for-like basis, DIM revenue fell 2%, while other divisions averaged more than 4% growth.

Using WPP's preferred measure, net sales, the gap was smaller, with DIM flat (0.0%) and other divisions averaging just over 3% growth.

During the third quarter, revenue in the Data and Investment Management (DIM) division improved in the UK and Latin America compared with quarter two, with Africa 'maintaining strong growth', but this was offset by lower growth in North America and Asia Pacific, and Continental Europe was 'flat'. Taking the first nine months of the year as a whole, reported DIM revenue increased 8.0% to £1.89bn, but like-for-like revenue (-0.7%) and net sales (+0.7%) were flat. However the firm says it has noticed a growing recognition of the value of 'real' data businesses, rather than those that depend on third party data, and an opportunity to demonstrate competitive differentiation through integration of media investment management and DIM insights. The implication is that DIM is helping to fuel growth in other divisions, and therefore remains key to group strategy despite recent financial underperformance.

Overall the company reported third quarter revenue up 23.4% to £3.6bn, driven by growth in North America and Europe, and even on a constant currency basis overall sales grew 7.6%. However more than half of this growth is down to acquisitions - like-for-like growth was a more modest (if still respectable) 3.2%. Reported revenue for the first nine months of the year increased 15.8% to £10.2bn.

CEO Sir Martin Sorrell (pictured) says the Group, which generates more than 90% of its sales outside the UK, continues to focus on growth in western Europe, particularly Germany, France, Italy and Spain.

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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