NEWS12 June 2013

WPP sees insight gains in North America and UK in first four months of 2013

Financials UK

UK — Communications services group WPP’s consumer insight division saw revenues grow 1.7% in the first four months of the year on a like-for-like basis.

On a constant currency basis, the division grew 3.1% while gross margin was also up 1.7% on a like-for-like basis.

In its trading update, April saw the fastest growing markets of Latin America and Asia Pacific continue their strong growth but revenues in North America and United Kingdom were also up on a like-for-like basis – over 5% and almost 10% respectively.

The group as a whole reported revenue for the first four months up almost 7% at £3.445bn while like-for-like- revenues were up well over 2%.

In its trading statement, WPP chairman martin Sorrell said that although economic downturns were deeply painful, there was also cause to be grateful for them.

He said that contrary to belief, spending on the building and maintenance of brands was as crucial to a company’s long-term health as spending on the purchase and maintenance of capital equipment.

Sorrell added: “Those companies that have kept the faith and maintained their marketing investment have consistently emerged from recessionary times having made relative gains. And those who chose to believe that such expenditure was discretionary – and could be painlessly cut – not only emerged the weaker but remain so for a greater many years thereafter.”