XM Asia To Buy Majority Stake In Designercity - Quick Facts

(RTTNews) - Advertising firm WPP Plc (WPP.L, WPPGY) announced that XM Asia, an unit of WPP's wholly-owned operating company, JWT, the global communications group, would acquire a majority stake in Hong Kong digital consultancy Designercity.

Designercity, founded in 1995 in London, and relocated to Hong Kong in 2000, employs 108 people and has unaudited revenues of HKD 43.7 million for the year ended as at March 31, 2013, with total assets at the same date of HKD 18.7 million.

The company said this investment is a further step towards WPP's declared aim of developing its businesses in the fast growing economies of Asia Pacific, as well as Latin America, Africa and the Middle East, Central and Eastern Europe. Collectively, the Group, including associates, employs over 47,000 people in the Asia Pacific region, generating revenues of $5 billion. In Greater China, WPP recorded revenues of $1.4 billion and 14,000 people.

WPP's digital revenues were well over $5 billion in 2012 and represented 33% of total Group revenues of $16.5 billion. The Group is targeting 35-40% of revenues to come from digital over the next five years.