Thursday, August 26, 2010

WPP Group And The Real Mad Men

An investor should probably expect an earnings release from London's WPP Group (Nasdaq:WPPGY) to sound pretty encouraging. After all, this is the world's largest integrated marketing services company and a major player in ad creation, brand strategy and public relations. Nevertheless, it seems like investors are a little cautious on this "Big Six" advertising company, as worries about the health of the European and American consumer swirl around the markets. 

The Quarter that Was
All in all, WPP Group posted a solid first half result. Revenue rose more than 3% as reported, and was up nearly 3% on an organic basis, with almost 5% organic growth in the second quarter. The company saw a rather solid result in North America (up 5.8% on a like-for-like basis), while local revenue grew strongly in the Asia Pacific/Latin America/Eastern Europe segment before currency movements rendered that largely moot. Europe, though, was a notable laggard. All in all, WPP Group basically met expectations with its revenue performance, with well-balanced growth across all major categories.

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