Insight Arm Helps Recovery in WPP Profits

Revenue and profits in WPP's Consumer Insight division rose in the first six months of 2010: the former slowly, up 2.4% on a like-for-like basis from a low comparative, but the latter more rapidly with headline profit before interest and tax (PBIT) up 22% to £83.7m.

The Consumer Insight division, Kantar, includes TNS-RI, Millward Brown, Lightspeed Research and Added Value and in the latest results accounts for 26.3% of the group's total revenue.

In March, the firm reported that revenues in the division had fallen 9.5% on a like-for-like basis during 2009, whilst on the same basis gross margin fell by 7.7%. Reported revenue for H1 2010 shows a slight recovery from this low, up 3.4% to £1.16bn from £1.12bn, but profits have recovered faster. Operating margins improved 7.2%, helped by the integration of TNS custom research and RI, along with other TNS and Kantar operations.

In a statement, WPP commented: 'As the impact of the sub-prime, insurance monoline, Bear Stearns and Lehman crises abate and relative performance becomes easier, the group's strategic focus on new markets, new media and consumer insight will become even more important. Clients will be increasingly looking for growth, advice and resources, and [investing] in understanding consumer motivations.'

For the group overall, revenue rose 3.5% to £4.4bn, and headline operating profit climbed 33.1% to £455m.

Web site: www.wpp.com .