WPP disappoints

While WPP continues to experience strong growth in its emerging market businesses, which accounted for 29 per cent of first-half revenue following 9.7 per cent like-for-like growth, it is a different story in developed markets. North America, which accounts for 35 per cent of revenue, had the slowest six months, with constant-currency underlying revenues rising 0.4 per cent, including a 0.6 per cent fall in the second quarter. However, the US presidential election should lead to a pick-up in the second half. Business in western Europe, which accounts for 24 per cent of turnover, also slowed in the second quarter with meagre growth of 0.8 per cent, down from 2.5 per cent in the first quarter. Performance in the UK was more robust.

High levels of competition hit the profitability of WPP's consumer insight business, but the group nevertheless managed to deliver on its target of raising the operating margin by 0.5 per cent to 11.5 per cent, which helped drive up adjusted EPS by 13 per cent to 25.8p.