Shares in advertising giant WPP (WPP) jumped nearly 5 per cent to within pennies of a 13-year high as underlying sales increased across all regions and sectors, apart from western Europe and in public relations, where macroeconomic turmoil on the one hand, and client belt-tightening on the other, affected performance.
Growth across the developing world and central and eastern Europe slowed over the second quarter, but like-for-like revenues still finished the period up 6.4 per cent, with many countries even posting double-digit rises. And with operating profit up an impressive 21 per cent to £197m, the segment now accounts for over 30 per cent of group profit. It's likely to grow even more as WPP is aiming to generate 40 to 45 per cent of group revenues from these faster-growth regions and digital within five years.
North America, which generates a third of group revenue, saw comparable sales grow 0.8 per cent to £1.84bn, but the star performer was the UK operation, where underlying sales rose 4.6 per cent to £669m and adjusted operating profit grew 16 per cent to £85m.
Broker Numis Securities expects full-year pre-tax profit of £1.49bn and EPS of 81.3p, up from £1.32bn and 73.4p in 2012.
| WPP (WPP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,225p | MARKET VALUE: | £16.4bn | |
| TOUCH: | 1,224p-1,225p | 12-MONTH HIGH: | 1,246p | LOW: 766p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 580p* | NET DEBT: | 34% | |
| Half-year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 4.97 | 358 | 22.3 | 8.80 |
| 2013 | 5.33 | 427 | 22.3 | 10.56 |
| % change | +7 | +19 | - | +20 |
Ex-div: 9 Oct Payment: 11 Nov *Includes intangible assets of £11.78bn, or 883p a share | ||||
