Advertising firm WPP Plc. (WPPGY,WPP.L) Friday said its first-quarter revenues rose 5.9 percent from last year, benefited by its digital activities and performance in faster growing geographic markets. Like-for-like revenue growth was 2.1 percent. Profits and operating margin for the period are above budget and well ahead of last year.
Looking ahead, the firm sees stronger second half, partly reflecting easier comparatives with the second half of 2012. In 2013, it aims growing revenues and gross margin faster than the industry average.
In a trading update, WPP noted that its quarterly reported revenues increased to 2.53 billion pounds from 2.39 billion pounds in the previous year, with 3 percent growth from acquisitions and 0.8 percent from currency, reflecting a weaker pound sterling.
In dollar terms, revenues were up over 4 percent to $3.92 billion. At constant exchange rates, revenues grew 5.1 percent from a year earlier.
Gross margin improved 1.9 percent from the prior year, as the scale of digital activities increased.
According to the company, faster growing markets of Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe were strongest in the first quarter, followed by the UK.
In North America, revenues grew 0.9 percent at constant currency, and in the UK. constant currency revenues were up 11.9 percent from last year. In Western Continental Europe, revenues improved 2.7 percent from a year ago.
In Asia Pacific, Latin America, Africa & the Middle East and Central and Eastern Europe, revenue growth was strongest, as it was during the whole of 2012, with constant currency revenues up 9.7 percent, the company stated.
Net new business in the first quarter was $1.50 billion, compared to $1.86 billion last year.
The advertising firm still expects like-for-like revenue and gross margin growth of around 3 percent and operating margin improvement of 0.5 margin points for the full year.
WPP.L is currently trading at 1,065 pence, down 10 pence or 0.93 percent on the LSE.
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