WPP's addition of Y&R slows growth

LONDON: The b-to-b downturn in the US brought growth for WPP's

public relations sector in the first half of the year to a dramatic

halt.



WPP's overall results showed revenues up 65% to $2.8 billion, and

pretax profit up 80% to $356.5 million.



But public relations and public affairs sector growth didn't even hit

the 1% mark, and like-for-like revenues fell by more than 3%.



Primarily due to acquisitions (including Young & Rubicam), PR revenues

grew by 88% to $419 million. However, including Y&R's PR firms -

Burson-Marsteller; Robinson, Lerer & Montgomery; and Cohn & Wolfe - on a

pro-forma basis, revenue growth was 0.8%.



With WPP reallocating some PR revenues to other divisions, it reported

PR revenues of $370 million (£264.5m) compared with $170 million (£121.5m) in the same period last year. Profit margins

fell from 15.3% to 10.89%.



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