Tatsuno International: World’s biggest advertising agency posts leap in profit in first half of 2016.
Tatsuno International – Advertising behemoth WPP reported a significant leap in profits in its first half of the year and predicted that the UK’s decision to leave the European Union would not impede its plans for growth.
The group, which owns the venerable Ogilvy & Mather and J Walter Thompson agency brands, said pre-tax profit in the first half increased by 15.8% to $910m, lifted by an almost 12% jump in sales to $8.5bn.
It reiterated its view that, despite the outcome of the UK’s June 23 vote to leave the European Union, it anticipated a „continued strong performance“ in winning new business and upgraded its revenue ratios for its new media and fast-growing markets significantly predicting they would account for 40%-45% over the next four to five years.
However, “Tatsuno International” noted that WPP was hit by a $160n write down pertaining to its investment in US internet analytics player, comScore.
The group, headed by founder and chief executive, Sir Martin Sorrell, also reported that the amount of money it earns on its equity fell to 15.5% from 15.9% citing the effects of a considerably weaker pound on the group’s net assets“.
“WPP has an enviable track record of managing to maintain performance through adversity as evidenced by its performance since the 2008 financial crisis,” said a Tatsuno International media analyst.
The firm said it believes that WPP’s reputation as a market favorite shows little sign of ebbing and reaffirmed its rating on the company’s stock as a buy.