Net sales growth accelerates at Britain’s WPP

WPP, which handles the advertising needs of brands such as Ford and Unilever, reported third-quarter like-for-like net sales growth of 3.3 percent, compared with the 2.3 percent in the first half. It noted that it would be characteristically cautious about the fourth quarter but reiterated its full-year target of over 3 per cent net sales growth.

Operating margin for the nine months period were up 0.5 margin points in constant currency, 0.3 margin points in reported and targeted to be up 0.3 margin points in constant currency for full year in line with objective.

Digital revenue across the group was up strongly, reaching nearly 7% on a LFL basis.

“What you see in the mature markets…can make up for the softness that you see in Asia and Latin America”, Mr. Sorrell said. Sales rose to 2.93 billion pounds from 2.76 billion pounds a year earlier, London-based WPP said in a statement Monday.

WPP’s net new business in the first nine months of the year totaled 3.21 billion pounds ($4.9 billion).

Sorrell said trading in the United States had remained solid while it enjoyed good demand in Germany, Spain and to a lesser degree Italy.

But, the company is looking forward to the Rio Olympics, US Presidential election and UEFA Euro 2016, all of which “typically boost advertising and marketing services investment by around one per cent”.

WPP said that “slowdowns in China and Brazil and geopolitical issues” remain top of business leaders’ concerns.

“We don’t expect any major changes to consensus”, Liberum analysts said in a note.

“On the downside, easier comparatives look to have played their part, a 20% plus share price out-performance against the wider FTSE-100 index over the previous year raises a few potential valuation concerns, while like other global corporations, WPP continues to navigate Central Bank generated currency volatility”, he added.

Shares in the group were down 1.8 percent by 0811 GMT.