WPP profits up 37%; digital advertising hits £1.27bn

WPP has reported profits of £334m, while digital advertising has reached £1.27bn for the first six months of 2011.

nma

The media conglomerate, which owns agencies including media planning and buying operation GroupM and advertising agencies Ogilvy and Grey, said that pre-tax profits were up over 37% year-on-year to £334m.

Revenue was up 6% on the previous year to £4.7bn, while billings were also up more than 5% at £21.4bn.

In the first six months, direct and digitally-related activities accounted for 28.1% of the group’s total revenues, or $2.1bn (£1.27bn) per annum. The target is to make this up to 40% of total group revenue within four years.

Quantitative disciplines, including digital and consumer insight, now account for 47% of group revenues.

Across the group’s communications services sector, WPP reported a “slight up-tick” in growth in branding and identity, healthcare and specialist communications, including digital and interactive, with like-for-like growth of almost 8% in the second quarter.

Consumer insight revenues were up 2.6%, a reduction from the first quarter, with slower growth in the US, the UK and Japan in April and May, with a partial recovery in June. Consumer insight revenues in Latin America showed particularly strong growth in the second quarter, followed by Asia Pacific and Africa.

Concerns around a “Euro contagion” and a US slowdown, however, has prompted caution across WPP, with the group reigning in its full year forecast.

In March, WPP presented a more upbeat view of the future for the advertising and marketing services industry after posting its fastest quarterly revenue growth in more than a decade. The marketing services company said revenue grew 8.5% in the last three months of 2010, the fastest growth rate since Q4 2000. December saw the first monthly double-digit growth rate since January 2001.

This story first appeared on New Media Age. For more digital stories and analysis’ from NMA click here now

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here