GO
Loading...

CNBC Exclusive: WPP Expected to Grow 5% - 6% in 2007

Martin Sorrell, the chief executive of advertising group WPP, said on Friday that analysts would now be expecting the advertising giant to achieve like-for-like revenue growth of between 5% and 6% in 2007.

Sorrell told "Squawk Box Europe" that WPP's like-for-like growth had been almost 8% in July. Earlier in the session Friday, WPP reported a 5.3% rise in first-half like-for-like revenues.

Sorrel warned that the advertising industry could struggle when U.S. President George Bush leaves office next year.

"Where we see some room for caution is after the U.S. presidential election at the end of 2008 and into 2009," Sorrell told CNBC.

WPP, whose agencies include JWT and Young & Rubicam, reported first-half revenues of $5.8 billion and headline pretax profit of $669.2 million.

The operating margin was 13.1%, in line with the group's margin target for 2007 of 15%.

Analysts said the results showed the group was enjoying good momentum and benefiting from its strong presence in China and India, where first half organic revenues were up almost 29% and 22% respectively.

Symbol
Price
 
Change
%Change
WPP
---

Featured

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • According to Re/code, Apple is close to buying Swell, a Pandora for talk radio. The "Squawk Alley" crew and Jon Steinberg, Daily Mail North America CEO, provide insight.

  • Zillow CEO Spencer Rascoff discusses the rationale behind his deal to buy Trulia for $3.5 billion in stock. Jon Steinberg, Daily Mail North America CEO, and the "Squawk Alley" crew provide insight.

  • CNBC's Rick Santelli and Peter Boockvar of The Lindsey Group, discuss inflation and the Fed's interest rate policy. Boockvar says the data is moving much faster than the Fed is forecasting and they are falling way behind the reality of the data.