NEWS31 October 2014

Slowdown in WPP growth attributed in part to ‘geopolitical risk’

Financials News UK

UK — WPP has suffered a slowing of like-for-like revenue and sales growth in the third quarter of 2014.

The advertising group’s reported revenue for the third quarter is £2.76bn, a rise of 3.1%. The slowdown of growth has been linked to growing concerns over geopolitical tensions and a lack of growth in the Eurozone.

Revenues in constant currency were up 10.6% compared with last year, reflecting the continuing strength of the pound against the dollar.

The group cites a number of “black swans” (unknown unknowns) such as Ebola and Hong Kong as specific geopolitical risks, as well as a number of “grey swans” (known unknowns), including fragility and lack of growth in the Eurozone and worsening prospects in the Middle East.

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