WPP Reports Slight Increase In Q1 Revenue

(RTTNews) - UK-based advertising giant WPP Group Plc. (WPP.L, WPPGY) Friday reported a modest growth in revenue for the first quarter. In constant currency, revenue improved significantly from the prior year, with particularly strong performance in the U.S. and the U.K.

''Following the Group's record year in 2013, 2014 has started stronger and similar to the final quarter of 2013, with all geographies and sectors growing revenues and gross margin or net sales on both a constant currency and like-for-like basis,'' the company said in a statement..

WPP noted that first-quarter profits, revenue margin and gross margin or net sales margin were above budget.

The owner of the Young & Rubicam and Grey Group agencies said reported revenues rose 1.5 percent to 2.570 billion pounds and advanced 8.7 percent to $4.257 billion.

In Constant currency, revenues were up 9.6 percent and like-for-like revenues advanced 7 percent.

WPP said the negative impact of exchange rates on revenues was 8.1 percent, fully reflecting sterling strength in the final quarter of 2013.

The company saw particularly strong like-for-like growth in revenue in North America and the U.K., at 11.2 percent and 12.2 percent, respectively at constant currency.

Like-for-like revenue grew in all regions and business sectors, with particularly strong growth in North America, the U.K. and Asia Pacific.

At constant currency, Advertising and media investment management revenues increased 14.7 percent and Data Investment Management revenues were up 3.6 percent.

Public Relations and Public Affairs saw a 2.9 percent growth and Branding and Identity, Healthcare and Specialist Communications witnessed a 9.1 percent increase.

Further, the company said early indications show that full year like-for-like revenue growth would be up strongly and gross margin or net sales growth up over 3 percent, consistent with the first quarter.

According to the company, the pattern for 2014 looks very similar to 2013, with slightly increased client confidence.

The company is targeting gross margin or net sales margin improvement of 0.3 margin points excluding the impact of currency.

Like-for-like revenue is expected to be up strongly and gross margin or net sales growth of over 3 percent.

WPP.L is up 0.3 percent in early morning trading at 1,278.00 pence.