• by Steve McClellan , March 1, 2012

WPP earned an 11.4% revenue gain for 2011 to $16.05 billion with profits of $1.46 billion, up 43.4%. Both revenue and pre-tax profits reached record levels, the company said.

The Dublin-based holding company said organic revenue growth (ORG) -- a key performance indicator for the industry, which excludes acquisitions and currency fluctuations -- was up 5.3% for the year, at the low end of the spectrum for the other major holding companies. 

By comparison, both the Interpublic Group and Omnicom Group reported 6.1% ORG for the year, while Publicis said it posted 5.7% ORG for 2011. WPP did not break out results for the fourth quarter, but did report higher ORG for the first half -- 6.1% versus 4.6% for the second half of the year.

Media revenues grew at a faster pace, however -- up 19% overall with 13 ORG. GroupM, the media management arm, was credited with bringing net new billings of over $2.5 billion.

WPP reported that billings for the year rose nearly 9% to $71.7 billion, with net new business billings up over 7%. The company said about 35% of new assignments in 2011 were generated through the joint development of opportunities by two or more shops within the group.

The company improved its operating profit margin by more than a full percentage point to 14.3%, returning it to the highest pro-forma level achieved since before the financial crisis. It expects to improve its operating margin this year by another half of a percentage point to 14.8%, while achieving organic revenue growth of 4%.

WPP predicts 2012 to be at least as strong as 201, bolstered by three quadrennial events, including the Summer Olympics (in London this year), the European soccer championships and the U.S. presidential elections.

But WPP also cited potential obstacles, including ongoing Eurozone issues, Middle East conflicts and worries about a potential growth slowdown in China. In 2013, the U.S. will have to confront its continuing budget deficit issues.  “Legislative gridlock may continue at a time when kicking the can down the road may no longer be viable,” the company stated.