Ad firm WPP sees revenues rise

WPP, the world's largest advertising group, said it expected a good fourth quarter after posting key organic revenue growth at…

WPP, the world's largest advertising group, said it expected a good fourth quarter after posting key organic revenue growth at the top end of forecasts due to strength in the US, Britain and traditional media.

WPP, whose clients include Vodafone and Unilever, said its key third-quarter like-for-like revenue figure was up by 7.5 per cent.

The figure, which excludes the impact of acquisitions and currency fluctuations, was up 4.1 per cent for the nine months and the group said it now hoped to achieve something similar in 2011.

"We are just starting to ... prepare our budgets, but preliminary indications are that our operating companies believe like-for-like revenue growth in 2011 may be more similar to 2010, despite the parent company's earlier feeling of 0-2 per cent growth," it said.

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Chief executive Martin Sorrell said earlier this week that the group was "set fair" for the rest of this year after a strong third quarter and expectations had also risen after rival Publicis nearly doubled its organic growth forecast.

However the group also warned that its clients were still concerned about 2011 and had worries over Eurozone contagion, American consumer demand, deficit reduction and the impact of increased taxation.

On a reported basis, revenues for the period were £2.25 billion.

WPP had previously said it could achieve full-year like-for-like growth ahead of the 3.1 per cent posted in the first seven months of the year, leading analysts to target around 4 percent growth.