Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Shares  >  Nyse  >  Interpublic Group of Companies Inc    IPG

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

U.S. growth offsets Chinese jitters at ad group WPP

08/26/2015 | 05:30am US/Eastern
WPP Group Chief Executive Officer Martin Sorrell speaks at the Global Investment Conference 2012 in London

Britain's WPP (>> WPP PLC), the world's biggest advertising company, said it was on track to hit its demanding full-year sales target after solid first-half demand in mature countries helped to offset a slowdown in China.

Britain's WPP (>> WPP PLC), the world's biggest advertising company, said it was on track to hit its demanding full-year sales target after solid first-half demand in mature countries helped to offset a slowdown in China.

WPP, which handles the advertising needs of brands such as Ford and Unilever through agencies including JWT and Ogilvy & Mather, posted results showing it was performing broadly on a par with its two big U.S. rivals Omnicom (>> Omnicom Group Inc.) and IPG (>> Interpublic Group of Companies Inc) and ahead of French group Publicis (>> PUBLICIS GROUPE).

To hit its full-year like-for-like net sales target of more than 3 percent growth however, WPP will have to accelerate through the second half after posting a 2.3 percent rise in the first half and a jump of 3.7 percent in July.

Chief Executive Martin Sorrell, one of Britain's best known businessmen, said trading in China had been "weak" in the second quarter compared with the first, although he expects that to rebound in the second half.

"The growth rate in China has clearly been affected by what is going on, irrespective of the stock market, underlying growth has been affected," he told Reuters, in regards to the Chinese stock crash which has unnerved global markets.

He still calls himself an "unabashed bull" on China.

Sorrell has been a vocal champion of emerging markets, investing earlier than others. In previous years he has been able to counter muted growth in places like continental Europe with booming demand in Brazil, China and Russia.

Results on Wednesday showed the opposite effect, with net sales growth of 3.5 percent in North America in the second quarter, compared with just 0.7 percent from Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.

Sorrell said he expected the strong performance in the U.S. to be maintained, despite a raft of media planning contracts from huge global brands that have come up for review, sparking increased competition.

The strong performance in the U.S. echoed the recent updates from Omnicom and IPG, which were also helped by buoyant corporate demand in their home market.

On a like-for-like revenue basis, the measurement used by WPP's rivals, the British firm was up 4.9 percent, compared with 5.2 percent at Omnicom and 6.2 percent for Interpublic. Publicis reported growth of 1.2 percent.

"WPP’s ongoing ability to navigate treacherous economic conditions is likely to consolidate its favoured market rating, with the consensus of the shares as a strong buy likely to remain intact," said Richard Hunter, Head of Equities at Hargreaves Lansdown Stockbrokers.

Shares in the group were down 1.4 percent, on a par with the FTSE 100 Index.

(Editing by Sarah Young and Keith Weir)

By Kate Holton

React to this article
Latest news on INTERPUBLIC GROUP OF COMPA
08/26 U.S. growth offsets Chinese jitters at ad group WPP
08/24 INTERPUBLIC OF : Jesse Lin Promoted To Vice Chairman, McCann Worldgroup APAC, An..
08/24 INTERPUBLIC OF : LA Dodgers Accelerator Announces Program Companies
08/21DJAnother Tough Week For Media Stocks Amid Global Market Rout
08/17 INTERPUBLIC OF : Daniel Fisher goes to Martin London
08/11 INTERPUBLIC OF : Declares Common Stock Dividend
08/10 INTERPUBLIC OF : LATAM Airlines Group Announces New Global Agency Group
08/06 INTERPUBLIC OF : McCann Worldgroup : Promotes Nannette LaFond-Dufour To Chief Cl..
07/29 INTERPUBLIC OF : IPG Presents 2015 Inclusion Awards
07/22 INTERPUBLIC OF : Results of Operations and Financial Condition, Financial Statem..
Advertisement
Chart
Duration : Period :
Interpublic Group of Compa Technical Analysis Chart | IPG | US4606901001 | 4-Traders
Income Statement Evolution
More Financials