LONDON: Ogilvy and Hill & Knowlton were star performers in the latest annual results of global communications group WPP, with PR revenues up 33% from 1998 and profit margins rising to 13%.
LONDON: Ogilvy and Hill & Knowlton were star performers in the
latest annual results of global communications group WPP, with PR
revenues up 33% from 1998 and profit margins rising to 13%.
The PR and public affairs division of the communications conglomerate,
which now accounts for 8.2% of revenue, increased to dollars 290 million
from dollars 218 million in 1998, with pre-tax profits of dollars 38
million up from dollars 25.4 million.
WPP reported overall increases in revenues of 13% to dollars 3.5
billion, and pre-tax profits of dollars 413 million, up 20%.
Fueled by the acquisition of Alexander Communications (now Alexander
Ogilvy) and entertainment firm Baker Winokur Ryder, Ogilvy posted
revenues of dollars 124 million, up 79%. Organic growth was 33%. H&K
revenues rose by nearly 18% to dollars 243 million, with margins above
11%. Revenues included numbers from the 1999 purchase of tech specialist
Blanc & Otus.
Revenue from non-advertising divisions now accounts for 53% of the
overall mix at WPP. Chairman Martin Sorrell told PRWeek that he expected
non-advertising revenue to rise to more than 75% over the next few
years. ’PR is as effective - and maybe more so - than other
channels.’
Sorrell believes non-advertising revenue will continue to grow as
clients begin to look for ways to avoid the rising cost of airtime (up
as much as 10%) on the broadcast networks.
