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WPP's strong growth sends its shares to all-time high

The advertising titan's focus on growth markets fuelled gains across its territories and divisions
August 24, 2016

Shares in WPP (WPP) climbed 6 per cent to an all-time high on the back of a resilient first-half performance. The advertising giant's investments in technology and emerging markets drove underlying net sales and operating profits up across its divisions and territories, propelling overall adjusted pre-tax profits up 12 per cent to £690m.

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The drop in statutory earnings (see table) reflects one-off gains of £203m in the comparative period, as well as a £122m write-off mostly related to a troubled investment. WPP - which counts Apple, Nike and Coca-Cola among its clients - benefited from higher advertising spending across most of its major sectors and territories. Moreover, industry consolidation helped it to secure major assignments with new and existing clients.

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