WPP reveals profits boost

WPP has reported a 36% rise in pre-tax profits to £669m and a 25% rise in revenues to £5.37bn during 2005 the group’s twentieth year.

Net debt for the network also increased £129m to £1,212m, in a year which included a cash payment for the acquisition of the Grey Global Group of £376m. Much of the growth of the network occurred from the acquisition.
The UK returned a weak performance compared with other markets, recording organic growth of 1.9%, compared to Europe's 2.9%, North America's 5.8% and worldwide growth of 11.9%.
During 2005, WPP media agencies MindShare, Mediaedge:cia and MediaCom generated estimated net new billings of £1.6 billion globally.
The report on the results mentioned the network's local difficulties in Italy, where country manager Marco Benatti was personally dismissed by WPP chief executive Sir Martin Sorrell.
The report states: "In January 2006, the contract of the Group's Italian country manager was terminated and an investigation initiated into certain aspects of the Group's operations there. Legal action against the former country manager has commenced. It is not expected that this will have a significant effect on the Group's financial results."

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Square Mile publisher aims for 450,000 users for Festival Baby site

Square Mile publisher aims for 450,000 users for Festival Baby site

Square Up Media, the publisher of Square Mile magazine, is moving into the music publishing market with Festival Baby, a new website for festival fans.

Share
The language of content and how to find an agency that is fluent

The language of content and how to find an agency that is fluent

More than a few voices speaking at once normally means an inability to hear anything that's being said, regardless of the wisdom of any one speaker.

Share
Watch the first YouTube clip, nine years on

Watch the first YouTube clip, nine years on

This week marks the ninth anniversary of the first clip uploaded on YouTube, a 19-second video of YouTube co-founder Jawed Karim at the San Diego Zoo.

Share

Get news by email