WPP reported a 2.5% revenue gain to $16.46 billion for full-year 2012 with a pre-tax profit of just over $1.7 billion, up 8.2%. The revenue gain was suppressed in part due to currency
fluctuations—as reported in British Pounds, revenues were up 3.5%.
Organic revenue growth for the year was 2.9% which was in the middle of the pack compared to other holding companies.
For example, Omnicom reported 2012 organic growth of 4%; Publicis reported it at 2.9% while Interpublic said its full year organic growth was less than 1%.
The company said it was taking a
charge against earnings of roughly $140 related to “certain structural issues within businesses primarily in Western Continental Europe and to balance staffing levels and align staff costs given
anticipated levels of revenue.”
The company said 2013 would a “demanding year,” and projected organic growth of around 3% noting continuing worries about the Euro Zone, the
U.S. deficit issue, Middle East turmoil and a somewhat uncertain outlook for the BRIC markets. Also cause for concern: a proposed referendum in the UK about whether or not to stay in the
European Union.
The prospects for 2014 look better, WPP said, with big advertising events like the U.S. elections, Olympics and World Cup teed up.