NEWS29 June 2010

WPP ‘ahead of budget’ so far this year

News UK

UK— WPP has reported revenue and profits ahead of budget for the year so far in a trading update on the first five months of the year given at its AGM today.

The group’s consumer insight businesses, which include TNS, Millward Brown and Lightspeed, performed roughly in line with the group as a whole with revenue growth of just over 2%, and better than the advertising and media investment management businesses, which grew 1.7% – although the group said it has seen a marked improvement in that area in the second quarter.

Last year insight accounted for £2.3bn of the group’s total revenue of £8.7bn.

Revenue, profits and operating margins were ahead of last year despite similar levels of severance costs, the group said. It has also reduced debt by £270m to £3.12bn, from £3.39bn in the same period last year.

WPP’s objectives continue to be “to encourage greater coordination and cooperation between group companies, where this will benefit our clients and our people, and to improve our creative product,” chairman Philip Lader (pictured) told shareholders at the firm’s AGM today.