26th Aug 2015 06:26
LONDON (Alliance News) - Media buying giant WPP PLC on Wednesday posted a sharp rise in pretax profit for its first half, boosted by exceptional gains and an improved operating performance, and reiterated guidance of net sales growth of over 3% for 2015.
WPP proposed a dividend of 15.91 pence, up 37% from 11.62 pence a year before.
The company posted a rise in pretax profit of GBP710 million for the half year to end-June, up 45% from GBP491 million a year before, boosted by exceptional gains on the sale and revaluation of some of the company's associates and investments. On a headline basis, pretax profit rose GBP596 million, up 12% from GBP532 million.
Revenue rose 6.8% to GBP5.84 billion from GBP5.47 billion a year before at actual exchange rates. At constant currency, revenue rose 6.4%.
Reported billings rose 5.0% to GBP23.16 billion from GBP22.06 billion.
The company said its revenue rose 5.0% on a like-for-like basis in July, with net sales up 3.7%, which it said indicates a likely stronger third quarter.
WPP said it continues to expect revenue and net sales growth of over 3% for the full year with a stronger second half.
The marketing services company said that "2015 looks to be another demanding year, although a weaker UK pound against a stronger US dollar may continue to provide some modest currency tailwind, which may be now more than offset by a stronger pound against the euro and the fast growth market currencies."
However, 2016 may provide a further lift to the industry, WPP said, noting its "maxi-quadrennial status - enlivened by the visually-stunning Rio Olympics and Paralympics, by the less visually-stunning United States Presidential Election and, last but not least, the UEFA EURO 2016 Football Championships."
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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