WPP buys Brazilian firm as sales grow
Advertising giant WPP has shrugged off the economic gloom to deliver more than six per cent like-for-like sales growth in the four months to the end of April.
Martin Sorrell’s firm said a strong performance in the US, where revenue rose almost eight per cent, and in the UK, which saw more than a seven per cent rise, were the growth drivers.
WPP has also added a Brazilian acquisition to its emerging markets footprint, buying Brazil’s largest independent digital agency f.biz for an undisclosed price.
F.biz has 200 staff and generated revenue of $30.1m reals (£11.6m) last year.
WPP has rebounded strongly from the recession thanks to its strength in markets such as India and China, whereas it said European markets revenue rose just over three per cent in the past four-month period.
WPP said tsunami-hit Japan was its only Asian market not to have grown and said the situation was unlikely to change for most of this year.
Political turmoil in the Middle East was continuing to have an impact, with year to date revenue flat.
WPP, whose ad agencies include JWT and Ogilvy & Mather, said it would continue to focus on balancing headcount growth and sales growth, but would grasp market opportunities and invest in new or existing talent where necessary.
“We continue to be cautiously optimistic about the prospects for the remainder of 2011 and, indeed for 2012,” Sorrell said in a statement.
“2013 may be challenging, as a re-elected or new United States president has to finally wrestle with the colossal fiscal deficit.”