WPP profits on ad market rebound

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    4 March 2011
    Last updated at 02:46 ET

    Marketing group WPP saw profits in 2010 rise by almost a third to £851m, thanks in part to a rebound in US advertising in the final quarter.

    Like-for-like revenue growth – ignoring the effect of acquisitions – hit 8.5% in the last three months of the year.

    For the year as a whole, the group saw like-for-like revenue growth of 5.3%

    The results were slightly better than expected, and follow similarly strong upturns at industry rivals Omnicom of the US and Publicis of France.

    The company said it expects growth to continue at a similar 5% clip into this year.

    The result was driven by continuing strong growth in China as well as the rapid recovery in the US market.

    “The United States behaved more like a fast-growing, or as some others insist on calling them, an emerging market, growing at 7%, against GDP growth of around 3%,” noted the firm in its preliminary results.

    However, speaking at the Davos summit earlier this year, chief executive Sir Martin Sorrell warned that, while he expected the recovery to continue this year, much would turn on how the US government tackles its budget deficit, which he called the “big gorilla in the room”.

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    WPP profits on ad market rebound