WPP projects improved full year margin forecast

Martin Sorrell-led advertising firm WPP, known for its acquisitions, said that revenue growth had speeded up in the third quarter with strong growth in the emerging markets outpacing slowing growth in North America.

According to the group, its full-year operating margin would improve beyond the 70 basis points achieved in the first half.

Third quarter reported revenues were up by 9 per cent at £2.46 billion as against the £2.25 billion seen in the three months ended 30 September 2010, as the rate of growth quickened from the 6 per cent rise seen the group's first half. According to the group, if reporting in US dollars, a 13.1 per cent rise would have been seen in the third quarter, reflecting the weakness in the pound sterling.

North America accounting for over a third of group sales, reported revenue increase of just 2.2 per cent, with the next largest division, Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe, achieving 14.5 per cent growth.

According to the group noted it had increased its dependency on this division (to group revenues) by one percentage point in the third quarter. UK revenues in the process were up 8.9 per cent.

For the first nine months of the year, the company reported revenues at £7.17 billion.