UK-based advertising giant WPP Plc. (WPP.L,WPPGY) said that reported revenues in the third quarter of 2014 were up 3.1% at 2.763 billion pounds. Revenues in constant currency were up 10.6% compared with last year, the difference to the reportable number reflecting the continuing strength of the pound sterling against the US dollar, the euro and many currencies in the faster growth markets, but with some easing, principally against the US dollar in the last two months, mostly reflecting the uncertainties that surrounded the Scottish referendum.
On a like-for-like basis, excluding the impact of acquisitions and currency fluctuations, revenues for the quarter were up 7.6%.
In the first nine months, reported revenues were up 2.8% at 8.232 billion pounds. Revenues in constant currency were up 11.0%, the difference to the reportable number reflecting the continuing strength of the pound sterling against the US dollar, the euro and many currencies in the faster growth markets, but at a lower relative level than the first half.
Some softening in preliminary quarter 3 forecast like-for-like revenue and net sales growth from the quarter 2 revised forecast, but net sales growth target of over 3% maintained. Headline net sales operating margin target improvement, as previously, of 0.3 margin points in constant currency.
The company reaffirmed long-term targets. Above industry revenue and net sales growth due to geographically superior position in new markets and functional strength in new media and data investment management, including data analytics and the application of new technology; improvement in staff cost/net sales ratio of 0.2 or more depending on net sales growth; net sales operating margin expansion of 0.3 margin points or more excluding the impact of currency; and headline earnings per share growth of 10% to 15% p.a. from net sales growth, margin expansion, strategically targeted small and medium-sized acquisitions and share buy-back.
For comments and feedback contact: editorial@rttnews.com
Business News