WPP reports an 8.1% rise in PR revenues

WPP, the world's largest marcoms group, has reported an 8.1% rise in PR revenues over the first-quarter of 2012.

Sir Martin Sorrell: WPP's chief
Sir Martin Sorrell: WPP's chief

The owner of H+K Strategies, RLM Finsbury, Cohn & Wolfe and Burson-Marsteller reported that PR revenues had risen to £225m over the quarter.

This figure represented a like-for-life rise of a more modest 1.9% and accounts for 9.4% of WPP overall revenue. In particular, the group noted that Burson-Marsteller and Cohn & Wolfe showed the strongest growth.

Revenues in WPP’s UK businesses grew by 5% – 2.5% on a like for like basis – and represented 11.9% of group revenues. Notably the Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe regions together now make up 28.5% of revenues, a moving further ahead of the 23.5% in Western Europe.

Overall, group revenue grew by 7.6% to £2.39bn. Like-for-like growth was 4.0%, with 3.4% growth from acquisitions. In terms of outlook, the group stated: ‘Concerns about the eurozone crisis, The Middle East, a Chinese hard-landing and rising commodity prices certainly affected consumer and corporate confidence globally in the second half of 2011, and was reflected in a slowdown in economic activity in most geographic regions and functional sectors.

'Despite this, advertising and marketing services expenditures continued to rise as Western based multi-national companies and increasingly new-market-based companies are prepared to invest in both capacity and behind brands in fast-growing markets. At the same time, they are also prepared to invest in brands to maintain or increase market share even among slower growth Western markets, such as the United States and Western Europe. 

‘This has the virtue of not increasing fixed costs, although we in the comms business regard brand spending as a fixed investment and not a discretionary cost. This positive double-whammy is clearly benefiting our industry once again this year, albeit at a slightly slower growth rate.’

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Labour hires Obama election strategist David Axelrod to fight General Election

Labour hires Obama election strategist David Axelrod to fight General Election

The man who helped Barack Obama win the 2008 and 2012 US presidential elections is to work for Labour along with members of his team.

Sky adds Fever PR to its roster after splitting with Cake

Sky adds Fever PR to its roster after splitting with Cake

Pay-TV giant Sky has added Fever PR to its agency line-up for a wide-ranging brief covering products and services.

Max Clifford trial jury to continue deliberations after Easter break

Max Clifford trial jury to continue deliberations after Easter break

The jury in the trial of celebrity publicist Max Clifford has been sent home for Easter and will reconvene on Tuesday for further deliberations about its verdicts on 11 charges of indecent assault.

Home Office brings in Munro & Forster to campaign against FGM

Home Office brings in Munro & Forster to campaign against FGM

The Home Office has tasked Munro & Forster (M&F) with supporting its campaign to eradicate female genital mutilation (FGM) as part of a wider retained brief.