WPP, which handles the advertising needs of brands such as Ford and Unilever, reported third-quarter like-for-like net sales growth of 3.3 per cent, compared with 2.3 per cent in the first half.
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Operating margins, a closely watched measure of the company’s profitability, rose 0.5% on a constant currency basis, above the long-term target of 0.3% for the full year.
The company said that it was “characteristically cautious” about closing out the year but expected to beat its growth rate for the nine months trading so far this year.
There remain two “grey swans” on the horizon, WPP said.
“In the final months of 2015, our prime focus will remain on growing revenue and net sales faster than the industry average, driven by our leading position in the new markets, in new media, in data investment management, including data analytics and the application of technology, creativity, effectiveness and horizontality. France remains soft, although there are a few small signs of improvement”, the company said.
The pattern for next year looks very similar to 2015, but with a boost from maxi-quadrennial events, such as the Rio Olympics, the US Presidential Election and the UEFA EURO 2016 Football Championships.
WPP’s advertising and media business led the way with an 8% gain to just under $2B.
“We don’t expect any major changes to consensus”, Liberum analysts said in a note.
“On the downside, easier comparatives look to have played their part, a 20% plus share price out-performance against the wider FTSE-100 index over the previous year raises a few potential valuation concerns, while like other global corporations, WPP continues to navigate Central Bank generated currency volatility”, he added.
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Currency fluctuations showed WPP revenue actually declined 1.6% for the period in dollars, but rose 17% in euros and 15.4% in yen.
