WPP Q1 Revenues Rise; Backs FY16 View For Margin, LFL Revenue Growth

(RTTNews) - Advertising giant WPP Group Plc. (WPP.L, WPPGY) reported Thursday higher revenues and net sales in its first quarter, with like-for-like revenue growth in all regions and business sectors. The company noted that revenue, net sales and profits, on a constant currency basis, were well ahead of budget and ahead of last year.

Revenue for the quarter increased 10.5 percent to 3.076 billion pounds from 2.783 billion pounds last year. In dollar terms, revenues grew 4.6 percent to $4.402 billion, and euro terms, it went up 6.3 percent to 3.989 billion euros.

Revenue in constant currency was up 9.0 percent. On a like-for-like basis, excluding the impact of acquisitions and currency fluctuations, revenue was up 5.1 percent.

Net sales were up 8.1 percent on a reported basis, up 6.7 percent in constant currency and up 3.2 percent on a like-for-like basis.

Billings grew 8.3 percent at £11.922 billion and were up 6.7 percent in constant currency.

Looking ahead, for fiscal 2016, the company continues to project like-for-like revenue growth of well over 3 percent and net sales growth of over 3 percent.

The company targets operating margin to net sales improvement of 0.3 margin points excluding the impact of currency.

The budgets for 2016 were prepared on a cautious basis as usual, but continue to reflect the faster growing geographical markets and faster growing functional sectors, the company noted.