NEWS1 March 2012

WPP insight revenue up 1%, operating profit 10%

Financials UK

UK— Consumer insight revenue at WPP was up just 1% in 2011 to £2.46bn, but headline operating profit increased almost 10% to £258m.

The improved operating margin of 10.5% reflected a “continued cost focus”, said WPP.

The company said acquisitions in the consumer insight area, including data analytics firms, remain a key focus for 2012 – despite the sector’s falling share of group revenue (down from 26% in 2010 to 24.5% this year) and its comparatively low margins (the group average is 14.3%).

It has earmarked some £300m to spend this year, with companies operating in new markets and new media also of interest.

WPP’s total group revenue for 2011 increased 7.4% to £10bn with headline operating profit of £1.43bn.