WPP H1 Profit Rises; Millward Brown Buys Research Firm InsightExpress In US

(RTTNews) - UK-based advertising giant WPP Group Plc's (WPP.L, WPPGY) first-half 2014 reported pre-tax profit grew 15.0% year-over-year to 491 million pounds from 427 million pounds, or up 33.7% in constant currency. Reported headline pre-tax profit was up 1.5% to 532 million pounds from 524 million pounds last year, and up 15.6% in constant currency.

Half-yearly reported profits attributable to share owners rose by 29.9% to 365 million pounds from 281 million pounds a year ago. In constant currency, profits attributable to share owners went up by 53.3%.

Reported headline earnings per share amounted to 29.2 pence, up 2.8% from 28.4 pence reported last year. In constant currency, headline earnings per share on the same basis rose by 17.1%. On a reported basis, earnings per share improved by 25.6% to 27.0 pence from 21.5 pence and by 47.7% in constant currency.

Reportable revenue was 2.7% higher at 5.47 billion pounds, versus the prior-year figure of 5.33 billion pounds. On a constant currency basis, revenue was up 11.3% year-on-year, the difference to the reportable number reflecting the continuing strength of the pound sterling against the US dollar, Euro and many currencies in the faster growth markets, as seen in the final quarter of 2013 and the first half of this year, the company said.

On a like-for-like basis, excluding the impact of acquisitions and currency, revenues advanced by 8.7% in the first half, with net sales rising 4.1%, with the gap compared to revenue growth widening further in the second quarter, as the scale of digital media purchases in media investment management and data investment management revenues increased.

For 2014, reflecting the first half net sales growth and second quarter revised forecasts: the firm expects like-for-like net sales growth of over 3.0%; target operating margin to net sales improvement of 0.3 margin points on a constant currency basis in line with annual margin target.

Separately, WPP announced that its operating company, GroupM, WPP's global media investment management arm, has agreed to acquire Keyade, a digital search marketing agency in France. Founded in 2006, the agency specialises in performance-driven online media purchasing, and its clients are La Redoute, Air France and Interflora.

In addition, WPP's wholly-owned operating company, Millward Brown has acquired InsightExpress, Inc., a provider of media analytics and marketing accountability solutions in the U.S. InsightExpress would be combined with Millward Brown Digital, the company's US-based digital unit.