WPP revenue climbs as it considers Aegis bid
Televisionpoint.com Team
WPP Plc, the worlds second-largest advertising and marketing services company, said on Friday its third-quarter like-for-like revenue climbed almost 5% as it considered a bid for UK media buyer Aegis.
The company, home to ad agencies such as Young & Rubicam and JWT, said quarterly reported revenue including acquisitions and currency fluctuations grew by more than 26% from a year earlier to 1.35 billion pounds ($2.4 billion), boosted by its purchase of Grey Global.
Full-year like-for-like revenues are expected to climb 4 - 5%, WPP said. WPP has lost several major account decisions in recent weeks, including the defection of Coca-Cola from its Red Cell network and Samsungs creative advertising business, which was won by French rival Publicis.
Chief executive Martin Sorrell said WPP still had about two-thirds of the Samsung account, primarily in media buying and planning.
While WPP has recently suffered some losses, including Gillette and Samsung, we believe these should be placed in the context of an extremely strong net new business performance for the first nine months, the Numis media team said in a research note.
The companys net new billings for the first nine months of the year have totalled 4.64 billion pounds, up 45% from a year ago.
The client losses have resulted in job cuts at Red Cell, and WPP is planning to reshape the network in order to emulate smaller and nimbler independents such as Wieden + Kennedy and Bartle Bogle Hegarty. WPP and US private equity firm Hellman & Friedman are considering a joint bid for UK media buyer Aegis.
Sorrell said WPP 'is continuing to mull' an offer, but that not enough information has been supplied by Aegis to make a decision. WPP is interested in Aegis research arm Synovate, and would likely leave the media buying and planning assets for its private equity partner. Sources have told Reuters that WPP and Hellman & Friedman are seeking more information about the volume discounts received by Aegis agencies like Carat, Europes biggest media buyer.
WPP Plc, the worlds second-largest advertising and marketing services company, said on Friday its third-quarter like-for-like revenue climbed almost 5% as it considered a bid for UK media buyer Aegis.
The company, home to ad agencies such as Young & Rubicam and JWT, said quarterly reported revenue including acquisitions and currency fluctuations grew by more than 26% from a year earlier to 1.35 billion pounds ($2.4 billion), boosted by its purchase of Grey Global.
Full-year like-for-like revenues are expected to climb 4 - 5%, WPP said. WPP has lost several major account decisions in recent weeks, including the defection of Coca-Cola from its Red Cell network and Samsungs creative advertising business, which was won by French rival Publicis.
Chief executive Martin Sorrell said WPP still had about two-thirds of the Samsung account, primarily in media buying and planning.
While WPP has recently suffered some losses, including Gillette and Samsung, we believe these should be placed in the context of an extremely strong net new business performance for the first nine months, the Numis media team said in a research note.
The companys net new billings for the first nine months of the year have totalled 4.64 billion pounds, up 45% from a year ago.
The client losses have resulted in job cuts at Red Cell, and WPP is planning to reshape the network in order to emulate smaller and nimbler independents such as Wieden + Kennedy and Bartle Bogle Hegarty. WPP and US private equity firm Hellman & Friedman are considering a joint bid for UK media buyer Aegis.
Sorrell said WPP 'is continuing to mull' an offer, but that not enough information has been supplied by Aegis to make a decision. WPP is interested in Aegis research arm Synovate, and would likely leave the media buying and planning assets for its private equity partner. Sources have told Reuters that WPP and Hellman & Friedman are seeking more information about the volume discounts received by Aegis agencies like Carat, Europes biggest media buyer.
Copyright 2005 - 2009 Televisionpoint.com. All rights reserved. A Bhash Media Private Limited Company.
This site is best viewed in Internet Explorer 6.0 or higher versions, at a resolution of 1024 x 768 pixels.