Sir Martin Sorrell said WWP's UK revenues showed significant improvement
The boss of advertising giant WPP Sir Martin Sorrell has revealed accelerating UK growth and said it does not expect the eurozone debt crisis to drag the world economy into a double-dip recession.
The world's largest advertising agency said UK revenues showed "significant improvement", up 8.9% in the three months to the end of September, compared to 6.6% in the previous quarter.
WPP, which is seen as a bellwether for the global economy, said like-for-like global revenues were up 4.7% in its third quarter as companies continue to invest in marketing their brands.
This is slightly lower than in the previous quarter and the group downgraded its full-year revenues growth targets to 5% from about 6%.
Sir Martin said it is "likely that European politicians will just about muddle through the current eurozone crisis" but tougher times lie ahead in late 2012 and into 2013 when the next US president deals with the deficit in the world's biggest economy.
The company believes its prospects for 2012 "do not look dire" and said it will benefit from the media spending around the US presidential election, the London Olympics and the Uefa European Football Championships.
The company predicted an L-shaped recovery, with "a long slog" in western markets in particular.
WPP owns agencies including Ogilvy & Mather and J Walter Thompson, and provides a range of services including media planning and buying, market research, branding and public relations. It is dependent on consumer confidence and companies spending on adverts.
Earlier this year, WPP said its sales and profits have returned to levels seen before the 2008 crash of Lehman Brothers after ad spending was hammered in the subsequent recession.
Now it said total revenues have risen 9% to £2.5 billion, underpinned by double-digit growth in Asia Pacific, Latin America, Africa, the Middle East and Europe. It has also taken on more staff in the quarter, including in the UK. It expected its operating margin to strengthen beyond the 0.7 percentage points gain achieved in the first half. Shares rose 1%.
