LONDON, April 27 (Reuters) – WPP raised its
forecasts on Friday after growth in emerging markets and digital
ads boosted the world’s largest advertising group at the start
of a key year featuring a summer Olympic Games and a U.S.
Presidential election.
WPP said like-for-like revenue rose 4.0 percent in the first
quarter and it now expected full-year revenue to rise more than
4 percent, having previously forecast around 4 percent.
The solid start was echoed by Aegis, a marketing
group specialising in digital communications and media buying,
which posted first-quarter organic revenue growth of 8.1
percent.
Both British groups benefited from strong growth in Asia
Pacific and other emerging markets, while Aegis continued its
strong momentum in the Americas, where it saw 20 percent organic
growth.
“It is a case of so far so good,” WPP chief executive
Sorrell told Reuters. “We feel pretty good. We are up across the
board.”
WPP said it had been boosted by strong demand in
faster-growing markets, adding western Europe had been better
than expected, even though conditions were tough in some
countries.
Sorrell has said that many companies around the world have
chosen to invest in their brand to defend or grow market share
in recent years, as they are still cautious about investing in
more permanent factors such as staff numbers.
“WPP has had a strong quarter, to the extent that it has
increased its outlook for the year,” said Richard Hunter, head
of equities at Hargreaves Lansdown Stockbrokers. “Its exposure
to emerging markets continues to pay dividends, whilst even in
its home British market progress is solid.”
Aegis chief executive Jerry Buhlmann said he expected the
group to deliver sector-leading organic revenue growth.
“In the first quarter of 2012, which was our first full
quarter as a focused media and digital communications
specialist, Aegis delivered excellent organic revenue growth,
particularly in the face of a sector-leading top line
performance in the prior year period.
WPP shares were down 0.1 percent at 0900 GMT, while Aegis
was up 0.6 percent.
