Strong results from WPP

WPP stock is up 5% after the advertising group announced a 19% increase in first-half pre-tax profits.

WPP revealed a pre-tax profit of £427 million for the first half of the year. The firm also increased its full-year guidance, confirming that it feels positive about the remainder of the year as well. Revenue for the first six months of 2013 was £5.3 billion, up 7% on last year, which was largely attributed to inorganic growth.

The company’s operations in Europe have had mixed performances; Turkish and German businesses registered strong growth levels while markets in southern European countries like Greece and Spain ‘remain tough’. WPP also stated that business that was once booming in markets like Latin America and Asia Pacific is now showing signs of slowing down. 

The British multinational company is currently the largest advertising firm in the world, but rivals Publicis Groupe and Omnicom Group are set to merge and therefore take over that title. This could drive WPP onto the acquisition trail in order to take the number one spot again. 

WPP chart

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