WPP: Sir Martin Sorrell's firm reports solid results but 'softening' in UK marketplace

WPP, the world's largest advertising company, reported a solid 5.9% rise in revenues to £2.93bn (€4.07bn, $4.49bn) in the third quarter, despite a "softening" in the UK marketplace. The company said the results were "highly satisfactory". Back in August, WPP chief executive Sir Martin Sorrell warned a "tsunami" of clients were reviewing accounts.

North America drove WPP's gains, accounting for more than a third of sales and gaining 3.7% excluding acquisitions and currency fluctuations. Western Europe grew 4.6%, while the UK lagged with 2.2% growth.

WPP said in a statement: "On a like-for-like basis, excluding the impact of acquisitions and currency fluctuations, revenue was up 4.6%, slightly stronger than quarter two.

"Like-for-like revenue growth in the third quarter continued at similarly strong levels in the United States with softening in the United Kingdom, which was more than offset by significant increases in both Western Continental Europe and Asia Pacific, Latin America, Africa and the Middle East and Central & Eastern Europe.

WPP said all sectors improved over the second quarter and, as in the first half, advertising and media investment management showed the strongest like-for-like growth, with media investment management particularly strong in North America, Western Continental Europe and Africa.

It added: "Data investment management, public relations and public affairs and branding and identity, healthcare and specialist communications (including direct, digital and interactive) all showed an improving trend compared with the second quarter, particularly in public relations and public affairs and in the sub-sector of direct, digital and interactive. In the first nine months, reported revenue was up 6.5% at £8.766bn."