WPP Group reports third-quarter revenues hit $1.6 billion (GBP $1 billion) for the first time ever, up 11% from third-quarter 2002. The increase is due in large part to WPP’s August purchase of Cordiant Communications Group, whose billings gave WPP a 10% boost. WPP said revenues rose 1% excluding Cordiant.
January through September revenue rose almost 2% (0.4% without Cordiant).
WPP won new business billing $644 million in the third quarter that ended September 30, $2.8 billion for the first nine months. Much of that has been large assignments from current and new clients, prompted by industry consolidation.
London-based WPP continues work on improving operating profits 10% to 15% and increasing operating margins 0.5% to 1% each year. It also keeps encouraging cooperation between divisions.
By region, North American third-quarter revenues rose 8%; U.K. was up 6%, with the rest of Europe up 11%. The biggest growth came from Asia Pacific, Latin America, Africa and the Middle East, up 17%.
By division, advertising and media investment management revenues rose 14% for the quarter, while p.r. and public affairs was almost flat. Branding and identity, healthcare and specialist communications revenues rose 9%, while information, insight and consultancy was up 7%.
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