WPP Reports 4.9% First-Half Organic Growth; Profits Soar 52%

WPP reported a 6.8% revenue gain for the first half to 5.839 British Pounds or $8.901 billion. Organic revenue growth, which excludes currency fluctuations, acquisitions and divestitures, was up 4.9%. Profit for the period was up 51.7% to 601 million pounds (approximately $942 million at today’s exchange rate).

By comparison, both Omnicom and Interpublic earlier reported first-half organic revenue growth of 5.2% percent, while Publicis Groupe said organic growth for the period was 1.2%.

WPP said net sales growth, which excludes inventory purchased and resold to clients directly was 5.2% to 5.041 billion pounds (approximately $7.9 billion) with organic net sales growth of 2.3%. The other holding companies do not break out organic net sales growth.

The company said ad billings were up 5% to 23.2 billion pounds (about $36.4 billion).

WPP also reported improved organic growth for July versus the first six months. Organic revenue growth was up 5% and organic net sales growth was up 3.7% indicating that the third quarter will likely be stronger than the first half “as budgeted and forecast.” The second half of the year will be stronger in part due “easier comparatives” with the second half of 2014.



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