From Cazenova just now .... DYOR .... but quick :)

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.

PM1 - I'd agree with that. I also see a worldwide advertising bonanza for the World Cup next year which will help to fill the coffers.

Queen Hi,

I like your thinking :)

They have also done some good aquisitions lately, and the synergies will pay off there too.

Cheers,
PM

Hi All,

Expect plenty of action on this one next week, with the interims out on Friday next week, it only leaves FOUR trading days to get in early !

Cheers,
PM

Took out a small SB position on Friday morning.

A quick return of 25 points or so will do very nicely. Wouldn't complain if it does a bit better.

pth

Morning folks,

Have joined you, looks a tidy set of interims are due out this week. Expect plenty of buying this week.

Daws

Welcome to the party dawsinho!

Thanks queen1,

Some info from over the weekend:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/08/21/cnwpp21.xml

WPP's fine forecast will cheer industry
By Guy Dennis (Filed: 21/08/2005)


WPP, the UK-listed advertising giant, will on Friday unveil a sharp rise in first-half profits that may boost confidence in the media sector.

The company, which owns advertising businesses including JWT and public relations companies including Buchanan Communications, is understood to have lifted headline profits before tax to about 250m in the first half of this year. This is a rise of around 25 per cent on the first half of last year, once changes in accounting rules, known as IFRS 17, are taken into account.


Sir Martin Sorrell: If I was 25 years old again, I would learn Chinese and go to Shanghai
In the UK, WPP, which is led by chief executive Sir Martin Sorrell, is believed to have grown revenues slightly in the six months to the end of June. This is likely to surprise many media executives who have complained of a worsening UK advertising market.

Although the UK accounts for only about 15 per cent of WPP's total revenues, the company's performance is seen as a barometer for the market. Sorrell's views on the prospects for the advertising industry are influential and closely watched by investors.

Sorrell famously described the recovery from the worst downturn in the advertising industry as "bath-shaped". Last October, continuing his theme, Sorrell argued the industry had emerged from the bath, but warned about "damp showers" in 2005.

WPP's fastest-growing market is believed to be Latin America, where there has been a sharp rebound in the Argentinian economy, combined with continued growth in Mexico and Brazil.

Other rapidly growing markets for the company have been Eastern Europe, India and China.

The company is expected to report a rise in first-half revenues in China of between 20 and 25 per cent. It recently won a major account from China Telecom.

This is likely to have pleased Sorrell, who in a recent interview said that if he could be 25 years old again, he would "learn Chinese and go to Shanghai".

Success in fast-growing areas including internet advertising and direct marketing by WPP subsidiaries such as Wunderman and OgilvyOne have also helped boost the company's profits. WPP is increasingly viewing marketing services as a two-speed industry, split between high-growth areas such as the internet and more mature markets such as network television with slower growth.

The results this week are also likely to show that WPP is successfully integrating Grey Global, the US advertising company that it last year agreed to buy for 845m.

Sorrell has been keen to dramatically increase operating profits at Grey via synergies with the rest of WPP: merging computer systems, using property more efficiently, and using the larger group's purchasing power.

WPP's results are also understood to include a rise in total revenues of about 20 per cent to about 2.4bn, and a rise in earnings per share of about 25 per cent to around 13.5p per share.

Over the past year WPP shares have slightly outperformed the FTSE100 index, rising by 23 per cent compared with a 22 per cent rise in the index.

one more article, may not be that important though! lol

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/08/22/cnjwt22.xml

Adland pulls plug on man's lustful ineptitude
By Rosie Murray-West, City Correspondent (Filed: 22/08/2005)


One of the world's leading advertising agencies has committed itself to "smart, positive portrayals of the modern man," after a book by one of its executives said that the media portrays men as victims of lust and ineptitude.


On the same wavelength: Michael Buerk
Marian Salzman, vice-president of JWT, says that masculinity has become an "easy target" for mockery. In her new book The Future of Men, she says advertising and marketing businesses need to rethink their approaches to gender.

JWT, the fourth-biggest advertising network in the world and owned by media giant WPP, now says it wants to help its clients to break out of this stereotypical way of looking at masculinity, and reach a modern male audience.

"For several decades, women have dominated the attention of marketers, whereas men have been all but ignored in most categories," says JWT Worldwide chairman and CEO, Bob Jeffrey.

"Men have faded into a collective boob-dom, a sort of Jackass meets The Man Show meets The Simpsons. As a result, the way we approach the men's market is ripe for reinvention." In her book, which is due to be published in September, Ms Salzman says that men have finally become fed up of being "the butt of every joke".

Ms Salzman's comments will resonate with newsreader Michael Buerk, who caused a furore last week by claiming that life is now being lived according to women's rules and that men had been reduced to little more than "sperm donors".

However, Ms Salzman argues that men need to do something about this state of affairs, by fighting against an inertia that tells them that they will always be top dogs at home and in the workplace. "This isn't a battle that women will instigate or fight on men's behalf," she says.

Her book analyses the portrayal of men in film, on television and in advertising, where Ms Salzman says the depiction of masculinity is the worst. She believes men are commonly portrayed as victims of their sexual organs, their lust, their emotional neediness, their ineptitude, or their overinflated egos.

Ms Salzman is well-known as a "futurist", a person who defines ongoing trends for the coming years. She is known as as one of the first to coin the term "Metrosexual", in 2003.

Daws Hi,

Excellent posts, keep 'em coming :)

Cheers,
PM

Bit boring today! buys outweighted sells and what was significant was most of the sells we're small tiddlers but some of the buys we're rather chunky. Anybody else intrested in this? Nobody's posted on the advfn thread for months - now that must be a good sign... lol

Daws

Daws Hi,

Looks like being pushed down towards the results (by the MM's/shorters ??), crazy really, as the Cazenova DCF is 7.50-ish, the results will make the price go up big time on friday anyway, hopefully :)

These are the realm of funds, institututions, and big P.I's, not small cap pump n dumps for advfn muppets :))))

Cheers,
PM

Paul,

Price is pretty stable, nothing to worry about really. Expecting a blue day on Friday and a gradual rise next week, whilst the results set in :-)

Daws

There has been some upwards movement in the sp over the last couple of weeks, due I suspect to the anticipation of good results on Friday. Could we therefore be disappointed with no push next week as the good news may already be factored in?

Queen1, hard to tell until we see the results i guess. The sp hasn't really moved with any significance and has been keeping with the trend since May.
I'm very hopeful of a move above the 610 range, which should signal an attack on this years previous high (625) and then onwards and upwards. In the short/medium term the trend is very much our friend. The company seems to be heading in the right direction and all signs are good.

Daws

Afternoon,

Last chance for people to buy before interims tommorrow. Could see some decent buying before the bell.

Daws

more good news ahead of tommorrow

Broker snap: WPP on good form

Date: Thursday 25 Aug 2005

LONDON (ShareCast) - Ad agency WPP was on top form today after ING turned buyer on the stock ahead of first half figures due tomorrow.

ING upgraded WPP Group to 'buy' from 'hold' saying it sees no room for disappointment concerning the figures, unlike next weeks European rival TF1.

ING said that since full-year results were published six months ago, WPP has underperformed Publicis and the FTSE 100 though this trend is now expected to reverse.

ING raised its price target for the advertising group to 710p from 600p.

Daws Hi,

Lets hope the figures live up to all the expectations :)

Cheers,
PM

Paul,

Things look very good! Couldn't find any issues at all. No point posting the interims (very long read!) But anybody is interested i think you should take a look.
Price targets are being raised left right and centre and we're bound to get some good weekend press.

Daws

Profits soar at WPP
MoneyAM
WPP Group, the world's second largest advertising services group, reported a sharp rise in pretax profits.

The group said trading prospects for the full-year remain good.

WPP, which owns businesses including advertising agency Ogilvy & Mather Worldwide and public relations company Buchanan Communications, said headline pretax profit before goodwill amortisation for the six months to June 30th rose 32% to 254.8m, compared to the analyst average forecast of 250m, from 193m a year earlier.

Revenue rose almost 22% to 2.47bn, from 2.02bn in line with the analyst forecast 2.4bn.

Hi All,

Reuslts are out, profit up 32% just like Cazenova suggested two weeks ago, which was the reason for me startting this thread. It took a while for the other analysts to upgrade WPP, they only did that yesterday !

Lets hope the S.P flies up to 7.50 over the next few days :)

Another PM1 success ????

Cheers,
PM


WPP reports sharp rise in H1 profits

LONDON (AFX) - WPP Group PLC, the world's second largest advertising
services group, reported a sharp rise in half-year pretax profits in line with
expectations and said trading prospects for the full-year remain good.
WPP, which owns businesses including advertising agency Ogilvy & Mather
Worldwide and public relations company Buchanan Communications, said headline
pretax profit before goodwill amortisation for the six months to June 30 rose 32
pct to 254.8 mln stg, compared to to the analyst average forecast of 250 mln
stg, from 193.0 mln stg a year earlier.
Revenue rose almost 22 pct to 2.47 bln stg, from 2.02 bln stg in line with
the analyst forecast 2.4 bln stg.

Daws Hi,

SNAP !!!!

I only saw your post appear after I posted :))))

Onwards and upwards :)

Cheers,
PM

LOL - cracking set of results, looking forward to some blue days ahead. Can't wait for all that tasty weekend press, which includes Monday!

Daws

Just topped up :)

Cheers,
PM

Compare the Cazenova forecasts to the results, and even they were conservative ....

WPP - upgrade to OUTPERFORM - interims due 26 Aug which we expect to be strong, reflecting gd Q2 fig's already reported by peers. We see potential for EPS upgrades of up to 5%-10% N/T (combination of top line, margin & US$). L/T we expect EPS growth of up to 17%-18% pa before maturing at 11%-12% pa. Key risks are (1) further M&A (2) prem valuation (17.1x 06 EPS before any upgrade), representing a 31% prem to UK mkt & 33% to UK media sector. Despite this we still believe it has room to outperform. Our DCF valuation gives 760p, 28% upside from here.


WPP

2005 INTERIM RESULTS IN ACCORDANCE WITH IFRS
---------------------------------------------

Billings up almost 24% at #11.3 billion
-----------------------------------------
Reported revenue up almost 22% to #2.5 billion
-----------------------------------------------
Like-for-like revenue up 6%
----------------------------
Headline operating profit up over 31% to #300 million
------------------------------------------------------
Headline profit before tax up 32% to #255 million
---------------------------------------------------
Diluted headline earnings per share up almost 28% at 13.8p
-----------------------------------------------------------
Net earnings up over 45% to #135 million
-----------------------------------------
Interim ordinary dividend up 20% to 3.00p per share
----------------------------------------------------

Get the profit takers out of the way, and let the institutions and funds pile in, they know what WPP are worth, and the growth, and they would love 25% profit from these, even if it takes them a few months or up to a couple of years to get it, that would still make it a good performer for them.

They don't pile in until a few days after the news ....

Cheers,
PM

Paul, bit surprised by the markets reaction. Still expect to finish the day blue, the results are there for everyone to see!

Daws

Not sure there has been a rash of profit taking Paul, the SP has been under selling pressure prior to the results. Sometimes there is no explaining the Markets reaction to a good set of results. On this occasion I don't think that the good news was already in the SP, so therefore we should see some healthy rises over the coming weeks. Fully agree Daws and would expect to finish in the blue, at the very least in the region of 590, trendline support.

pth

Pth,

590 appears to be the bottom of our recent trendline, so could be a great buying opp. Good to see Merrill Lynch reiterating its buy stance and 690p price target.

Daws

Daws

Opened a long about a week a go, which is looking a tad sad at the moment, but averaged down with two more longs this morning. Trend is up and 590 looks like the trend support so hopefully the dip is now complete and next week should see the up trend resume.

pth

Hi All,

Cazenova say that the price should go up much better after the 9:30 morning meeting is over, and analysts can see that the growth is still there. They wondered about the recent trading, as the growth seemed to have slowed a bit, but the figures were confusing, as it was the strong Aug 2004 that made the figures seem to be dropping, but they are still going up.

Cheers,
PM

Hi All,

These should fly now, turned blue here, morning meeting with analysts will make them all send out positive notes, and this afternoon the USA will open, and supercharge the price :)

Cheers,
PM

lol - Snap, also averaged down this am at 589.8. If i was more patient i could of got lower.. i'll never learn.

Daws

Hi All,

News is flying ....

http://news.google.co.uk/news?q=wpp&hl=en&lr=&tab=wn&ie=UTF-8&scoring=d

Cheers,
PM

WPP profits jump 32%

9.30am: Sir Martin Sorrells WPP network saw revenues increase by 6% in the first six months of 2005, with pre-tax profits up a massive 32% year on year to 255m.
The owner of the MindShare and Mediaedge:cia media agencies and a string of creative shops said like-for-like revenues once the addition of the Grey network had been added increased by 22% to 2.47bn.

Across the group new business billings made 1.9bn, as its Asia-Pacific, Latin America, Africa and Middle East regions performed well.

Revenues elsewhere in the group saw a 5.9%, 2.7% and 4% increase in North America, the UK and Continental Europe respectively.

The group said: Western Europe, although relatively more difficult, has improved and the United Kingdom has stabilised.

Rates of growth in Europe continue, however, to be two-paced, with Germany, France, Sweden, Denmark, Benelux and Portugal remaining softer and Central and Eastern Europe, Russian and the CIS countries in particular, more buoyant.

Elsewhere, WPP said the role of procurement teams in marketing decisions and the concentration of media ownership in some countries would stimulate consolidation in the industry, including advertising and marketing services.

The group is very well positioned to capitalise on these developments and to focus on developing the best talents, the strongest management structures and the most innovative incentive plans in the industry for our people, the group said in a statement.

http://www.mediaweek.co.uk/articles/folder2005/08/AugustDaily/WPP-1h2005-results

Broker tips: WPP, HMV, Rentokil, JD Wetherspoon
Fri 26 Aug 2005


LONDON (SHARECAST) - Ad agency WPP was stuck in the red today after UBS stuck with its neutral stance with a 605p price target, saying the results came in below expectations.

Merrill Lynch took a more bullish stance, as it maintained its buy stance and 690p price target.

Merrill said WPP, which reported a headline pre-tax profit before goodwill amortisation up 32% to 254.8m, has a "strong, well regarded management" and credible long term strategic targets.

Good results guys as forecast but as I stated earlier in the week the news appears to have already been in the price which is why the shares have gone nowhere today. Real shame.

What happened to that then..

Queen Hi,

The price is still nowhere near Merrill's price of 690p, let alone Cazenova's DCF of 760p.

As I said earlier today, institutions and funds wait for the price to drop back, then they pile in. It may be days or a couple of weeks, they are not in the hurry that most P.I's appear to be to jump on a bandwagon, so long as they know the 'value' is still there, they will be buying when they are ready, and the price will creep up slowly over the next few weeks/months.

Cheers,
PM

PM1 - that's as maybe but the market as a whole, for whatever reason, has voted with its feet today and shunned WPP, results and all. I've held for 2 years and am a believer but today was pathetic.

Queen Hi,

Today was profit taking by short termers and traders, just watch the price over the next 3-4 weeks, as the institutions and funds buy in for the longer term, they are not daft, they do this for a living, and they never buy in on news, they wait for the volatility to die down, and the traders to go elsewhere, then they buy in BIG chunks.

Cheers,
PM

This has turned out to be a bit of a disappointment, although looking oversold now. Hoping for a bounce tomorrow.

pth

FYI - some more business coming our way :-) Think we're due a bounce this week, must admit to being a little surprised last week, expected to see lots more blue! Still confident of making a tidy sum here though.

Daws

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-29-2005/0004095798&EDATE=

Abacus Chooses Ogilvy Public Relations


DENVER, Aug. 29 /PRNewswire/ -- Ogilvy Public Relations Worldwide today
announced the addition of Abacus to its agency roster. Abacus, formerly
DoubleClick Data Solutions, will work with the agency's Denver office to
re-introduce its brand and expanded capabilities.
"It is an exciting time for Abacus, and we are thrilled to partner with
Ogilvy PR to revive the organization's image and educate our core audience,
direct marketers, on our offerings," said Casey Carey, VP of Marketing for
Abacus. "Ogilvy's blend of B2B and retail client experience, their
understanding of our business, professionalism and passion for public
relations makes them a perfect fit for our business."
Abacus will be introducing its revived brand in the next several months.
The re-branding effort is a result of the recent acquisition of its parent
company, DoubleClick Inc., by a subsidiary of Hellman & Friedman LLC and JMI
Equity. Ogilvy PR/Denver will leverage its unique mix of B2B, corporate re-
branding and public affairs expertise to assist Abacus in the transition as
well as launch a national media and analyst campaign. The agency's proven
track record in the B2B sector includes an impressive client roster of both
local and national companies, including Raindance Communications, Level 3
Communications, Rivet Software, Virtela Communications and Evolving Systems.

About Abacus
Abacus, formerly DataClick Data Solutions, is a leading provider of
cooperative data, data management and analytical services for direct
marketers. Abacus provides the insight and capabilities that enable Catalog,
Retail and B-to-B marketers to create, build and maintain profitable
relationships with their customers, regardless of channel. For more
information, please visit http://www.doubleclick.com/abacus .

About Ogilvy Public Relations Worldwide
Ogilvy Public Relations Worldwide is a global marketing communications
firm, with offices in more than 60 cities around the world. Entering its 25th
year providing public relations solutions, Ogilvy Public Relations Worldwide
has specialties in consumer marketing, corporate (B2B), healthcare,
technology, public affairs, social marketing and entertainment. Through its
subsidiary Feinstein Kean Healthcare, Ogilvy Public Relations Worldwide
provides communication consulting to biotechnology companies. Ogilvy Public
Relations Worldwide is part of the WPP Group, one of the world's leading
communications services groups (Nasdaq: WPPGY; http://www.wpp.com ). For more
information, visit our Web site at http://www.ogilvypr.com .

Media Contact: Larkin Kay
Ogilvy Public Relations Worldwide,
(303) 634-2658

I'm out of these guys. I'm severely disappointed with the sp reaction to last week's results and whilst the sp may move north again there's not anything going to propel it faster than a turtle in treacle. There's much better value to be had for my 's elsewhere. Good luck to all holders.

Daws hi,

Nice one, thanks :)

Cheers,
PM

Queen Hi,

Bounce at 560 ....

Cheers,
PM

Queen1,

Good luck with your other investments, think we'll bounce soon and resume our upwards trend. Although the sp reaction to the results hasn't been good, the results were very good.
Paul - think we may start our bounce tommorrow:

WPP Group PLC
31 August 2005



WPP GROUP plc ('WPP')





WPP announces that on 31 August 2005 it acquired 400,000 of its own ordinary
shares of 10p each for cancellation. The shares were acquired at a price of
571.6109p per share.


This information is provided by RNS
The company news service from the London Stock Exchange

The company always buys its own shares when they are cheap, which imho is now.

Daws

Daws Hi,

Your right about the buyback, although I think the bounce actually happened this afternoon :)

Cheers,
PM

Don't know what that chart is all about, but the stock closed at 572/573. Hardly a bounce, more like a twitch.
Still in, (fool that I am!) and hoping for better things.

pth

PTH Hi,

The bounce at 3:45 looks like the one to me, we will see tomorrow I hope :)

Cheers,
PM

Pth - lol! 3 fools we could start a club...

Hey hoe people! More good news me thinks, Australia is one of the faster growing areas in communications services. Along with buying our own shares back yesterday, the deal with Abacus, the deal today and a cracking set of results we should be seeing a lot more blue... (famous last words).

Daws




WPP Group PLC
01 September 2005


For Immediate Release 1 September 2005

WPP GROUP PLC ('WPP')

Acquires outstanding 70% of TCG in Australia

WPP announces that it has acquired the remaining 70% of the issued share capital
of The Communications Group Holdings Pty Ltd ('TCG'), the third largest
advertising and marketing services company in Australia.

TCG's businesses include George Patterson Partners, Zenith Media, Ideaworks,
Professional Public Relations, Media Puzzle, Generator Bates NZ, HMA Blaze,
Underline Fitch, 20/20 Brand Action and Patts Digital. TCG's clients include
major Australian brands and companies in the financial, fmcg and services
sectors.

TCG reported revenues of A$131 million for the year ended 30 June 2005 and had
consolidated net assets of A$16.6 million at that date.

The various TCG businesses will be integrated into Young & Rubicam Brands in
Australia, with Zenith Media joining WPP's GroupM network.

Young & Rubicam Brands businesses include Y&R, The Campaign Palace/Red Cell,
Burson-Marsteller, Landor and Sudler & Hennessey. Young & Rubicam Brands clients
include leading Australian corporations, Government organisations and blue chip
multi-national companies.

This investment reinforces WPP's comprehensive communications services offer and
continues the Group's strategy of developing its networks in important and
faster growing sectors and markets.

For further information please contact:

Feona McEwan 44-20 7408 2204
WPP London

Hamish McLennan
Young & Rubicam, Sydney 612- 9931 6035
61 410 501 005




This information is provided by RNS
The company news service from the London Stock Exchange

Seems like nothing is going to stop the slide in this pile of shite Daws. Lost count how many consecutive red days we have had since the results. Or did we have a 1p rise yesterday? Won't be long before it's lost 10% of its value in just two weeks.
Bet you can't tell I'm pissed off!

pth

Best thin to do is short it! Bound to reverse then.

Pth,

know what u mean, my postions is looking porley at the mo. Looking back, it would of been a wise move to sell out on results day. On the positive side we've not had any bad news, we've actually had 4 bits of good news since! I'm still prepared to sit on these for a while as i don't see any reason for the slump...

Daws

The buy back continues...

WPP Group PLC
01 September 2005



WPP GROUP plc ("WPP")





WPP announces that on 1 September 2005 it acquired 500,000 of its own ordinary
shares of 10p each for cancellation. The shares were acquired at a price of
571.1265p per share.


This information is provided by RNS
The company news service from the London Stock Exchange

Another crap day! more shares bought back though.

WPP Group PLC
02 September 2005



WPP GROUP plc ('WPP')





WPP announces that on 2 September 2005 it acquired 500,000 of its own ordinary
shares of 10p each for cancellation. The shares were acquired at a price of
564.2709p per share.


This information is provided by RNS
The company news service from the London Stock Exchange

Hi All,

Cazenova sent out a note today, saying they expect underperformance of the share price to reverse very quickly.

I know all analysts don't concur on this one, but the value IS there, it's just a case of waiting for the market to realise it.

Cheers,
PM

Well, at least the bugger stopped going backwards today!

WOW - up over 1 % i'm starting to feel light headed lol

Well folks, thats me out! If i had the time to wait i'm sure wpp would get back up to the 600 mark in the coming weeks. Have re used cash to fund a more risky punt, in PET.

Best of luck,

Daws

Daws Hi,

Might be an 'oooops' from you soon ....

Morgan Stanley has upgraded its rating for WPP Group to overweight from equal-weight with a 625p price target, raising estimates.

Cheers,
PM

'bout time this dawg started going in the right direction again. Hope it can maintain the rise tomorrow.

pth

Hi Paul, good luck with wpp. Happy to of moved into pet after todays close, any one who continues to short it must be bonkers! wpp is solid investment in my eyes and i'm sure you guys will be back up to the 600 mark in no time.

daws

daws

I think you made the right call on this one. For a FTSE stock WPP really is a waste of investment time.

pth

Here's a preview of what is going to appear in The Business tomorrow:

October 02, 2005



SIR Martin Sorrells WPP has underperformed its main agency rival Publicis by 10% this year and as a result now trades on lower valuations than all of its peer group.

This is interesting at a time when growth looks set to accelerate over the next three years at a top line level and enhanced by more margin benefits from the integration of Grey Global.

Agencies are well placed, and have the benefit of two secular trends.

Firstly, there is strong growth in global advertising, with an accent on south-east Asia and those markets associated with China in particular.

Secondly, there is strong growth in internet related advertising compared to traditional media. Of the big agencies, WPP has the highest exposure to both.

In addition, WPP has momentum in its business. In the first half results net new billings rose by $3.5bn, with $1.9bn in the second quarter alone, from clients such as Time Warner, Shell and Sony.

WPPs management now presents its analysis of the industry as advertising working in four-year cycles.

It is interesting to note chief executive Sir Martin Sorrells view on the current cycle: 2004 marked the full recovery from the internet bust of 2000.

It was WPPs best year ever. 2005 is showing more improvement and in theory it is the weakest year of the 2005-08 period.

This is because 2006 sees the mid-term United States congressional elections, the World cup and the Winter Olympics.

The big year, 2008, has the Beijing Olympics and the European football championships.

Obviously there are risks. Investors are perennially concerned about the outlook for consumer-based advertising and a slowdown in the global economy in general, affecting the spending intentions of WPPs clients.

In addition, there is pressure on pricing across the industry from powerful clients now scrutinising the purchase of marketing services more closely.

But the powerful industry trends leading to accelerating growth, combined with a discount valuation, should ensure that WPP is a company worth keeping a close eye on in the next 18 months.

poor neglected WPP!
Today's figures were really quite good and, from memory, Merrill repeated its buy recommendation.
Though sp is very close to the 52-week high, i think i MAY concur but would appreciate views from others

been in this for a while spread betting this is a dead cert as far as u can say that as we all know things can go wrong !! but brokers rec 7.70 but no interest it seems on here

when cash gets tight, advertising budgets get squeezed .... though WPP has already fallen quite a long way, there could easily be more downside

chart sure indicates that, unlike the header's view, WPP is worth a lot LESS!
if someone has last week's Shares Mag, i think WPP may have had a mention in there.
If so, please can you publish comment here

never did short WPP at the time, but with sp teasing down through 25 dma, this may not be a bad time to do so

have decided it's quite a good bet and acted accordingly, not just because the markets are weak, but because traditional advertising is coming under ever greater pressure from the internet and, as already stated, in tight times, advertising is the first area to be cut

WPP figures are out tomorrow and i know somewhere reckoned they would be good and there may arguably a bonus courtesy of the Olympics ..... however, as i mentioned above, in a recession, advertising is one of the first casualties and traditional advertising, the backbone of WPP, is coming under ever-increasing pressure from the internet

WPP's trading forecast rather than the historic will be what drives sp tomorrow

That may well be the case but WPP have a big presence in Asia and the US and advertising is expected to hold up with the olympics and the presidential race. I have no doubt that you are right in the long run but not convinced it will hit next years earnings to take a hit in the results tomorrow

That peak in 2007 780p was for the 2008 oympics.take your money. NEXT peak will be 2011 for 2012 oympics.

we'll know who is right and who is wrong early tomorrow!

Im the nervous one. Not comfortable to be on the opposite side of a legend like cynic. I sense some pain coming, fortunately only 5 quid a point so hopefully it wont hurt that much, although running losses in Oil shorts now well in the thousands so it hasnt been the best of months and the losses are still mounting

i'm just a legendary tosser! .... having seen the headline, it very much looks that you were right and i wrong

Not at all your more right than wrong. re WPP ive given up anticipating the mkt but the results did look good

anyway, have closed my short as on balance, i think the analyst comment will be more positive than not ..... suffered a modest loss, but much less than i feared and certainly only half what it would have been just a day or two ago

it looks like we are both out of the money as loosing on the spread. As far a things go its a none event

hindsight says i should have left that short running, though common sense prevailed!

certainly not looking too good at the moment. I came in on Friday night and found it had turned red. You cant beat the market, ill keep the long open until the end of March and hope it will bounce back.

dangerous logic in today's markets .... just as i deemed it prudent to cut my short when it seemed to be going the wrong way after the results, suggest you watch very carefully indeed and jump ship as necessary

Its oil im worried about . One of my shorts on brent is at 98 dollars ..It is defying the laws of gravity

clunk!
weak figures and sp has plummeted ...... may still be worth a short

after this morning's horrid figures and prognostication for 2009, the 20p rise can surely only be attributed to bear closing as they take profits ..... if you read the entry on NewsWatch here, you'll undersatnd why i maintain this is a good shorting opportunity, even if sp is slowly slipping as i write

Gausie
as you know, i am really just a total dickhead, but the way i read it, once sp had firstly broken strongly through the old low of about 470 and then failed to hold the recovery from 430 and again 320, it looks like one-way traffic for the moment, especially if 320 breaks down too.

WPP has already admitted that 2009 will be tough in the extreme, and though i may well be wrong, i don't think they are particularly strong in digital advertising which is where all the new money is going.

further, digital advertising is still holding up well whjile traditional tanks

Cynic

Thanks for the heads up - but this one isn't for me. Good luck.

G

so far so good and modestly in the money ..... my own view is that the advertising sector is one-way south for the next several months at least .... added to my short position earlier today

unless i am much mistaken, a significant proportion of WPP's revenue comes from the automotive industry ...... the news surrounding GM, Toyota, Jaguar etc etc hardly augurs well!

seems the chart for this stock has collapsed in a heap! ...... never mind; have checked eslewhere and 305 looks like the serious support level .... if that goes, then "goodnight vienna"!

Probably doesn't help that CEO was on Newnight yesterday saying that next year was going to be a disaster!

he said 2009 was going to be tough just a few weeks but did not think it would be the disaster predicted .... as you say, his stance has shifted a bit ..... WPP has been an "iffy" stock for some time, as traditional advertising is dying and WPP in particular, gets a lot of its reevenue from the car industry

have just added to my short position here ..... i think WPP has a long way to fall over the coming months

and so it is beginning to prove .... shame i did not get the timing of my initial foray correct, but still

apparently Sorrell has admitted "tough tiome ahead before recovery" ..... is this a hint that their next figures will fall short of expectations? ..... i reckon so, have been saying so for ages, and damn well hope so as i am short!

cynic
talk it up short time, to try to hold price up, when tat dont work own up.
regards
jkd

i admit my bias, but all sorts of things look to me to stack up against WPP ..... advertising is one of the first casualties when strings tighten ..... a huge slice of WPP's biz comes from US car makers, and we all know what is going on there! .... WPP is a pretty traditional "above line" agency, even though that is changing, but it is "above line" that is getting hammered ....

what is the positive news for WPP?

cynic
sure you admit your bias, do you own up? then is your name Sorrell?
please read my post once again, sorry if it is ambigious. i agree with you.
regards
jkd

i did read it twice before posting and also came to the conclusion you were not attacking me, though it would not have upset me had you been

cynic
ta i would hope i would not attack you or anyone else for that matter, anyway nice to know you are so open minded about such things
regards
jkd

The chart would suggest 320p as being good support for the sp. Anything below that is in unknown territory. Presumably the shorters will close just before that?

sure cocked this one up big time .... have just bittenm the bullet .... should have sold out of this and kept my WOS short running ... conspiracy all round!

Not one I am following atm, but just for info (cynic) :
-------------------------------------------------------Old Tgt New Tgt
24-Aug-09 WPP Group WPP Royal Bank of Scotland Buy 475.00p 550.00p Reiteration
24-Aug-09 WPP Group WPP Deutsche Buy------------- 465.00p 610.00p Upgrade

though interestingly i saw a comment in ST about WPP being about to issue yet another profit warning .... would be quite surprised if that were actually so

good breakout here .... i know it's far from being alone, but with economies indisputably picking and especially in usa, advertising will be major beneficiary

i'll just bring this stock to everyone's attention again ..... it may not blow your brains out like DES (or CHAR!), but imo it's certainly a sector/stock which should be present in any portfolio in the current economic cycle

don't you just LOVE these analysts!
WPP upgraded to hold from sell at Citigroup, target price cut to 650p from 750p

i still like this major advertising company ..... sp has been very boring for ages, but JUST maybe we are now seeing and upward break

really good set of numbers yesterday and strong forecast
this won't produce fizz and bang like an E&P oily, but i reckon it's a good sector in which to have exposure, and WPP is probably one of the best

have been out for a while, but just bought again - money marries mouth!

perhaps not a white-knuckle ride like a small oily, but i can only repeat post 110 and guide you to the charts on post 107

and spiffing numbers yet again ..... but bet none of you guys have bought in

with the bottom of the economic cycle now looking to be behind us (especially in usa), a stock of this nature and calibre makes a good addition to any balanced portfolio - but i would say that, wouldn't i!

Do you still think there is more mileage in this one, Cynic?
Goes ex-divi wed 1st Jun '11.
Chart looking toppy, though maybe good support on the 200 DMA?

while i would certainly like to sp crack through the 50 dma, it has equally found support on 25 dma line

that apart, much of the rest of the world is now emerging from recession and with the olympics also now coming up, advertising revenues should strengthen ...... WPP are (i think) the largest advertising company in the world and make a good counter-balance to BLNX ..... on the downside, the horribly weak and weakening US$ may negatively impact WPP's results

Thanks. Duly noted.

Nomura has reduced its full-year revenue assumptions for advertising and marketing group WPP as growth in April appears to have slowed slightly after a stronger first quarter.

The trading statement for the first four months of the year showed organic growth of 6.2% vs. 6.7% for Q1 [first quarter] 2011. This implies April growth was less than 5%, meaning there has been a downward slope since the start of the year, the broker said.

Combined with tougher comparatives ahead, Nomura now considers a sub-5% growth rate more likely. The organic growth forecast for the full year is cut from 6% to 4.7%. However, a buy rating and 1,000p target price are retained.

With WPP's good statement this week, take a look at Creston (CRE), it's been out of favour for some time but now turning good - that's the one well undervalued imo and more likely to get taken out unless rerating continues.

with good employment numbers from US, it's time to dust this one down as it will benefit from any actual or perceived upturn in US economy ...... it happens that sp is also challenging 200 dma northwards

don't say i didn't tell you - was 688 to buy and now 714 bid after just 4 days

Well done cynic.

WPP PLC ("WPP")

Kantar to acquire majority stake in Oasis Insights, an independent market research business in Pakistan


WPP announces that it has agreed to acquire, through the Kantar network, a majority stake in Oasis Insights (Private) Limited ("Oasis"), an insight and consultancy business based in Karachi, subject to regulatory approvals.

Founded in 1996 by Mr Moazzam Al Qadri, Oasis offers insight and consultancy services to clients across all business sectors. Oasis employs 105 people and clients include Engro Foods, Mobilink, PTC, Ufone and Unilever.

Oasis' revenues for the year ended 30 June 2011 were approximately PKR 254 million, with gross assets at the same date of approximately PKR 109 million.

This investment continues WPP's strategy of developing its services in fast-growing and important markets and sectors. Pakistan is one of the fastest-growing markets in the world, identified by Goldman Sachs as one of the Next 11 economies to watch. WPP businesses (including associates) in the Next 11 markets generate revenues of more than US $700million and employ more than 9000 people.

StockMarketWire.com
Marketing giant WPP Group said today Burson-Marsteller, its wholly-owned PR firm, has agreed to acquire a majority equity stake in Viestintätoimisto Pohjoisranta in Finland.

Pohjoisranta, based in Helsinki, has a team of more than 40 professionals and is one of Finland's largest communications agencies.

Pohjoisranta has been Burson-Marsteller's exclusive affiliate partner in Finland since 2006 and now joins the network as Pohjoisranta Burson-Marsteller. The company's clients include HP, Metso, SAP and Stora Enso.

Pohjoisranta's unaudited revenues for the year ended 31 December 2011 were approximately €5.1m, with gross assets as at the same date of approximately €1.8m.

This acquisition continues WPP's strategy of investing in important markets and sectors. WPP businesses in Scandinavia, including associates, generate revenues of over $500m and employ nearly 3000 people.

and it's an olympic year too ..... this has to be a sensible component of a balanced portfolio (ramp ramp!)

Note from Liberum:
WPP FY11 results showed a significant beat on margin guidance, as well as a beat on organic revenue growth, again highlighting the resilience of the business and the potential for margin progression. We will review our top end of the range consensus numbers (we have 78.6p adjusted EPS for FY12E PE) postpresentation but expect consensus to rise by 5% – 10%. Reiterate Buy, DCF-based fair value is 1000p.

A very good set of numbers: Adjusted EPS was 67.7p, in line with our 67.8p estimate but ahead of consensus at 65.6p. Organic revenue growth was 5.3% ahead of 5% guidance and 5.1% Liberum estimates and driven by the faster growing markets, which showed 10.5% like for like growth. The real positive surprise was on the margin, up 110bps to 14.3% ahead of Liberum’s 14% and guidance of 13.9% or more. It was particularly boosted by Western Continental Europe (up 180bps yoy) and the faster growing markets (up 90bps, and now at 15.4% margin, close to North America’s 15.5% level).

North American organic revenue growth – confident despite Q4. A few reasons why we are not concerned: (1) suspect this is a specific issue with their market research unit, which the company has already identified and said it is taking steps to rectify. This would explain why WPP’s US Q4 performance looks weaker than others (other agency groups do not have this) (2) the US in general is still showing good advertising growth (3) It is obviously not impacting group margin or revenue progression (US was up 80bps yoy for margin).

WPP upped the dividend by 38% yoy, far higher than expected, to 24.6p vs. Liberum 20.5p estimate and 21p consensus. WPP is now accelerating its target of moving the dividend to 40% of fully diluted earnings (33% in FY11E).

Revised forecasts. For FY12E, guiding to 4% organic revenue growth (we have 4.6%) and 14.8% margin (as we have), a 50bps yoy improvement, but this has to be seen as conservative given 2011′s big beat (we had forecasted a 80bps yoy margin improvement in 2012E). We will revise forecasts post presentation. Our 2012E adjusted EPS forecast of 78.6p adjusted EPS was 10% ahead of pre-results consensus.
Valuation. Our current DCF-based price target is 1000p. The shares trade at 10.4x FY12E PE, which looks very attractive given the margin beat and potential for further earnings expansion.

confess i banked a good profit here about a week ago - but bought back in this morning, and that too is now in the money

hands up all you naughties who haven't followed sir's advice on this one and go and stand in the corner facing the wall for 15 minutes while you contemplate your sins

Jefferies has upgraded its rating for the stock from 'hold' to 'buy'.

The broker said that an analysis of WPP's largest clients and their 2013 ad budgets "looks encouraging" and "with expectations low, we see upside risk".

long time since this one has been highlighted, but figures due this week - prob excellent - and sp just touching 50 dma so possible bounce anyway

a nice little run since i mentioned this company a few days ago :-)

perhaps i'm re-finding my touch, though i did indeed get the date for the figures a week early

sp is now into new all-time high ground with momentum, so perhaps more fizz to come if the level can be held

since i last posted, i have sold at a decent profit and just bought back in again, albeit at a higher level

i think that this - or the sector at least - should be in all serious investors' portfolios at a time where economies are once again on the rise

Looks like it could pull back to the shorter term MA(mean reversion) but yes does look interesting Cyners. On my red hot watch list........cheers bud.

no doubt the market will think otherwise, but results out to day look pretty good to me

Liberum note:
WPP has cut its annual operating margin improvement guidance from 50bps to 30bps. This is disappointing, especially given the back office centralisation taking place (and the continued high growth of higher margin media buying, est. c. 20% of group revenues should also have pulled up margins). It has kept its annual diluted EPS growth target of 10-15% pa, but there will now be a greater emphasis on share buybacks (2%-3% pa vs. 1% previously). They continue to increase the dividend pay-out target to 45% In 2014 (from 42% in 2013)
WPP is guiding to like for like revenues over 3% and an operating margin improvement of 30bps yoy (we had 4.4% organic revenue growth and a 40bps margin improvement, but our forecasts are now under review). However, January has started well, with like for like revenue growth of 5.7%.
We cut the recommendation to Hold and put forecasts under review. We like the agency space and we continue to think that WPP is the best positioned agency group in terms of its assets and geographical exposure (c. 30%+ from the faster growing markets). We also think its digital strategy is the right one. However, given the surprise cut to the operating improvement guidance, we believe the shares will lack momentum, despite the strong start to 2014."

well i topped up a bit this morning at 1361

I hope not! :-)

oh alright - 1261 then :-)

looks a smart move with hindsight - currently 1311 :-))

StockMarketWire.com
WPP has booked an H1 pretax profit of £491m, from £427m a year earlier. Revenue was £5.5bn, from £5.3bn. It proposed a dividend of 11.62p a share, from 10.56p.

"All in all, however, on a reportable basis, 2014 looks likely to be another demanding year, as a strong United Kingdom pound and weak faster growth market currencies continue to take their toll on our reported results," the company said in a statement.

"But, if budgets and quarter two revised forecasts are met, 2014 will be another strong year, as the first half results demonstrate. Current nominal worldwide GDP forecasts for 2015 indicate a similar growth rate at around 5.4%. This suggests that 2015 should be another good year for our industry, despite the absence of any mini- or maxi-quadrennial events," it said.

Separately, the company announced two acquisitions.

WPP's wholly-owned operating company GroupM, WPP's global media investment management arm, has agreed to acquire Keyade, a leading digital search marketing agency in France.

WPP added that its wholly-owned operating company, Millward Brown, a global leader in brand, media and communications research, has acquired InsightExpress, Inc., a provider of media analytics and marketing accountability solutions in the United States. InsightExpress will be combined with Millward Brown Digital, the company's US-based digital unit.

Meantime, highlights of the H1 results were:

- Constant currency revenues up 11.3%, like-for-like revenues up 8.7%

- Constant currency net sales up 6.4%, like-for-like net sales up 4.1%

- Reported billings down 3.0% at £22.060 billion ravaged by sterling strength, but up 5.7% in constant currency

- Reported net sales margin of 13.0%, flat with last year, up 0.3 margin points on a constant currency basis and up 0.3 margin points like-for-like in line with the full year margin target

- Headline reported profit before interest and tax £622 million, down 2.4%, but up 9.0% in constant currency

- Headline profit before tax £532 million up 1.5%, up 15.6% in constant currency

- Profit before tax £491 million up 15.0%, up 33.7% in constant currency

- Reported profit after tax £396 million up 25.6%, up 47.9% in constant currency

- Headline diluted earnings per share 29.2p up 2.8%, up 17.1% in constant currency

- Reported diluted earnings per share 27.0p up 25.6%, up 47.7% in constant currency

- Dividends per share 11.62p up 10%, a pay-out ratio of 40% versus 37% last year

- Share buy-backs upped significantly in line with target to £390 million in the first half, up from £133 million last year, equivalent to 2.3% of the issued share capital against 1.0% last year

- Targeted dividend pay-out ratio of 45% likely to be achieved this year well ahead of schedule

- Including all associates and investments, revenues total over $24 billion annually and people average over 179,000

StockMarketWire.com
WPP has announced that its wholly-owned operating company JWT, the global marketing communications agency, has acquired a majority stake of Cairos Usabilidade Eireli ("Try"), a user experience agency in Brazil that designs and develops custom web, mobile, desktop and touch-enabled applications.

Try provides consultancy to their clients in user experience, interaction design and prototyping.

This investment continues WPP's strategy of investing in fast growing markets and sectors and its commitment to developing its strategic networks throughout the dynamic Brazilian market.

It also fits with WPP's strategy of investing in fast-growing markets and sectors such as data and digital. WPP's digital revenues (including associates) were well over $6bn in 2013, approximately 35% of the Group's total revenues of $17.3bn.

It has set a target of 40-45% of revenue to be derived from digital in the next five years.

WPP announces that its wholly-owned media investment management company, GroupM, has acquired 49% of media agency Haworth Marketing + Media ("Haworth") in the United States.

Haworth's billings for the year ended 31 October 2013 were approximately US$700 million with gross assets of US$87 million at the same date. The agency manages media investment for clients such as Target, Ben & Jerry's, Beats by Dr. Dre, Honeywell, DreamWorks Animation and The Oscars. Haworth, which employs 140 people and has offices in Minneapolis and Los Angeles, was founded in 1970.

GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Maxus, MEC, MediaCom and Mindshare, as well as GroupM Entertainment and Xaxis, its wholly-owned global programmatic media and technology platform. According to RECMA, GroupM manages US$105 billion in media invested by its clients.

The investment continues WPP's strategy of investing in important markets such as the United States where WPP companies (including associates) collectively generate revenues of over US$6 billion and employ approximately 25,000 people.

StockMarketWire.com
WPP has improved its headline FY pretax profit to £1.681bm, up 1.1% on the year and up 8.0% in constant currencies. Revenue rose 4.6% to £11.529bn, and was up 11.3% in constant currencies. Pretax profit rose 12% to £1.452bn, and up 21.3% in constant currencies.

Its dividend per share was 38.2p, up 11.7%.

Highlights:
* Reported billings at £46.186 billion, up 6.8% in constant currency driven by a strong leadership position in net new business league tables

* Revenue growth of 4.6%, with like-for-like growth of 8.2%, 3.1% growth from acquisitions and -6.7% from currency

* Like-for-like revenue growth in all regions,led by strong growth in North America, United Kingdom and Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, and by all sectors, with particularly strong growth in advertising and media investment management and branding and identity, healthcare and specialist communications (including direct, digital and interactive)

* Like-for-like net sales growth at 3.3%,with the gap compared to revenue growth more than the first half, as the scale of digital media purchases in media investment management and data investment management revenue continues to increase

* Headline EBITDA growth of 0.7%,and up 7.5% in constant currency, reflecting currency headwinds, but giving 0.2 margin points improvement, to 19.0% on net sales, with like-for-like operating costs (+3.1%) rising slower than net sales

* Headline PBIT increase of 1.1%to £1.681 billion, up 8.0% in constant currency

* Net sales margin, a more accurate competitive comparator, up 0.2 margin points to an industry leading 16.7%, up 0.3 margin points in constant currency, in line with target

* Exceptional gains of £196 millionlargely representing gains on the AppNexus and Rentrak transactions completed in the second half, together with other gains of £45 million, including gains on the re-measurement of the Group's equity interests, partly offset by £89 million of restructuring costs, £39 million of IT transformation costs and £7 million of investment write-downs, giving a net exceptional gain of £61 million

* Headline diluted EPS up 5.1%, up 12.6% in constant currency and reported diluted EPS up 15.7%, up 24.9% in constant currency, reflecting strong like-for-like revenue growth, acquisitions and margin improvement

* Final ordinary dividend of 26.58p up 12.4%and full year dividends of 38.20p per share up 11.7%

* Targeted dividend pay-out ratio of 45%, achieved in 2014, one year ahead of original schedule

* Return on equity[8] up to 15.0% in 2014, up 0.6 percentage points from 14.4% in 2013, versus a weighted average cost of capital of 6.1% in 2014 and 6.5% in 2013. During 2014 the value of the Group's non-controlled investments rose by £398 million, to £669 million from £271 million, reflecting the increasing value of its content businesses, primarily Vice, and the technology partnerships formed during the year with AppNexus and Rentrak

* Average net debt flat, at £3.001 billion compared to last year, at 2014 exchange rates, reflecting the significant incremental net acquisition spend and share re-purchases of £588 million, offsetting the improvements in working capital at the period end

* Creative and effectiveness excellence recognised again in 2014 with the award of the Cannes Lion to WPP for the most creative Holding Company, for the fourth successive year, since the awards inception and another to Ogilvy & Mather Worldwide, for the third consecutive year, as the most creative agency network. In another rare occurrence in our industry, in 2014 Grey was named Global Agency of the Year 2013 by both US trade magazines Ad Age and Ad Week. For the third consecutive year, WPP was awarded the EFFIE as the most effective Holding Company

* Strategy implementation accelerated in a pre- and post-POG (Publicis Omnicom Group) world, as sector targets for fast growth markets and digital raised from 35-40% to 40-45% over the next five years

StockMarketWire.com
WPP, the international marketing and advertising company has reported that in the first six months of the year reorted billings were up 5% at £23.2bn. Headline profit before tax was up 12.1% to £596 million from £532 million and up 13.2% in constant currency.

Reported profit before tax rose by 44.5% to £710 million from £491 million, or up 45.6% in constant currency, reflecting the Group's improved operating performance, as well as net exceptional gains on the sale and revaluation of some of the Group's associates and investments.

Reported profits attributable to share owners rose by 55.2% to £566 million from £365 million. In constant currency, profits attributable to share owners rose by 55.0%.

Diluted headline earnings per share rose by 14.7% to 33.5p from 29.2p. In constant currency, diluted headline earnings per share rose by 15.2%. Diluted reported earnings per share rose by 59.3% to 43.0p from 27.0p and by 58.8% in constant currency.

The Group says it continues to benefit from consolidation trends in the industry, winning assignments from existing and new clients, including several very large industry-leading advertising, media and digital assignments, the full benefit of which will be seen reflected in Group revenue later in 2015 and into 2016.

WPP is actively engaged in mainly media investment management reviews, chiefly in the United States, totalling approximately $20bn, which are on-going. The earlier results of these reviews have been good and further results will be announced towards the end of 2015 and into 2016.

JP Morgan Cazenove today reaffirms its overweight investment rating on WPP Group PLC (LON:WPP) and cut its price target to 1760p (from 1785p).

one of my core holdings

StockMarketWire.com
Advertising titan WPP's H1 pretax profit has slumped 40.1% to £425m, this primarily reflecting net exceptional write-downs of £122m.

The write-down was mostly linked to the company's investment in comScore, in comparison to net exceptional gains of £203m a year ago.

Dividends were share was 19.55p, up 22.9% on the year.

HIGHLIGHTS:
- Reported billings up 9.3% at £25.319 billion, up 6.3% in constant currency

- Reported revenue up 11.9% at £6.536 billion, up 5.2% at $9.367 billion, up 4.9% at €8.384 billion and down 2.7% at JPY1.042 trillion

- Constant currency revenue up 8.9%, like-for-like revenue up 4.3%

- Constant currency net sales up 8.1%, like-for-like net sales up 3.8%

- Reported net sales margin of 13.7%, up 0.4 margin points versus last year, up 0.3 margin points in constant currency in line with the full year margin target and 0.3 margin points like-for-like

- Headline reported profit before interest and tax £769 million up 14.9%, and up 10.3% in constant currency

- Headline profit before tax £690 million up 15.8%, up 11.7% in constant currency

- Profit before tax £425 million down 40.1%, down 45.5% in constant currency primarily reflecting net exceptional write-downs of £122 million, principally on the investment in comScore, in comparison to net exceptional gains of £203 million in the same period last year

- Reported profit after tax £282 million down 53.1%, down 58.8% in constant currency

- Headline diluted earnings per share 39.1p up 16.7%, up 11.5% in constant currency

- Reported diluted earnings per share 18.9p down 56.0%, down 62.0% in constant currency

- Dividends per share 19.55p up 22.9%, a pay-out ratio of 50%, in line with the revised target pay-out ratio of 50%

- Share buy-backs of £197 million in the first half, down from £405 million last year, equivalent to 1.0% of the issued share capital against 2.0% last year

- Return on equity slightly down at 15.5% for the 12 months to 30 June 2016 from 15.9% for the previous 12 month period, whilst weighted average cost of capital has fallen to 5.5% from 6.7%

- Including associates and investments, revenue totals over $28 billion annually and people average over 200,000.

investors may complain from time to time about martin sorrell's remuneration package, but it really is unjustified for a change .... the proof is in the results, growing divi and share price

StockMarketWire.com
WPP has sounded a note of caution for 2017 as revenues slowed in both UK and US, as it posted a much improved FY pretax profit and bumped its total dividend higher.

"Given continued tepid economic growth and recent weaker comparative net new business trends, the budgets for 2017, on a like-for-like basis, have been set conservatively at around 2% for both revenue and net sales," the ad giant said.

It added that the prospects in the UK were more mixed as the post-Brexit vote scenarios were played out over the next two years and uncertainties about the possible outcomes of the EU divorce increase.

"The four leading Western Continental European economies, Germany, France, Italy and Spain, let alone the Netherlands and Greece, also all face political uncertainty, although Germany and Spain are strengthening economically, the company said.

Pretax profit for the 12-month period was £1.9bn, up 26.7% from £1.5bn. Dividend was 56.6p a share, up 26.7% on the year.

WPP said North America constant-currency revenue was down 0.7% in the final quarter and like-for-like down 2.8%, while UK's was down 0.7% in the final quarter and like-for-like down 2.6%. Strong comparatives were a factor.

However, Western Continental Europe, Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe all saw Q4 revenue growth on a constant-currency basis.

Referring to current trading, the ad giant said January 2017 like-for-like revenue was up 1.5%, ahead of budget, with net sales up 1.2%, also ahead of budget and reflecting a more difficult comparative.

It added that the divergence between revenue and net sales in the group's media and data investment management businesses, continuing to narrow, as the proportionate scale of digital media buying and data investment management continued to reduce.

WPP said its budgets for 2017 had been prepared on a cautious basis as usual, but continued to reflect the faster growing geographical markets of Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe.

They also reflected the faster-growing functional sub-sector of direct, digital and interactive, with a stronger second half of the year, reflecting the 2016 comparative.

The company's FY 2016 results also showed reported billings up 16.0% at £55.245bn, up 5.5% in constant currency and 3.3% like-for-like. Reported revenue was up 17.6% at £14.389bn.

a drop of 8% looks ridiculously o'done to me and, unusually for this stock, i think there is a profitable trade to be done ...... have bought accordingly at 1758

OUCH!!
could have done without a 2nd set of poor figures from these guys

Credit Suisse today reaffirms its outperform investment rating on WPP Group PLC (LON:WPP) and cut its price target to 1600p (from 1920p).

HSBC today reaffirms its buy investment rating on WPP Group PLC (LON:WPP) and cut its price target to 1850p (from 2000p).

1250p(ish) looks a strong possibility barring a miracle.

Support from 16-10-2014

See how we open next week and may be a short term trade to the upside.

StockMarketWire.com
Advertising giant WPP booked an 8.6% rise in first-half profit after one-off gains from assets sales offset a fall in revenue.

Pre-tax profit for the six months through June rose to £846m, even as revenue fell 2.1% at £7.493bn.

The fall in revenue was due to currency headwinds, with revenue on a constant currency basis rising 2.9% and on a like-for-like basis rising 1.6%.

Underlying pre-tax profit fell by 7.0%, or 2.3% in constant currency terms, after operating margins contracted by 0.5% percentage points to 13.3%.

WPP left its interim dividend unchanged at 22.7p per share.

'The second quarter of 2018 was WPP's first quarter of like-for-like growth since the first quarter of 2017, and the company has performed strongly in terms of winning and retaining business over the period,' new chief executive Mark Read said.

'We have focused our efforts on providing more effectively integrated solutions to clients and, in competitive pitches, we have won or grown business with clients including Adidas, Hilton, Mars, Mondelez, Shell and T-Mobile.'

Read said a new mix of performance by by geography and function -- and a decision to invest in the growing areas of its business -- resulted in a slightly lower headline profit margin.

'As chief executive, my focus will be on invigorating our company and returning the business to stronger, sustainable growth,' he said.

'Our review of strategy is underway, addressing our structure, our underperforming operations, particularly in the United States, and how we position the company for the future.'

'We will provide an update by the year end.'

StockMarketWire.com
Global advertising and PR company WPP reported a continued slowdown in the third quarter, impacted by further weakening of the performance of its North American businesses and creative agencies, against a backdrop of structural change in the industry.

Third-quarter reported revenue fell 0.8% to £3.758bn, impacted by currency headwinds of 2%, while nine-month reported revenue slid 1.6% to £11.251bn.

"Turning around WPP requires decisive action and radical thinking, and our performance in the third quarter of 2018 reinforces our belief in that approach," said CEO Mark Read, who took up the position in September.

"As previously stated, our industry is facing structural change, not structural decline, but in the past we have been too slow to adapt, become too complicated and have under-invested in core parts of our business," he added.

The company has already begun implementing its previously identified strategy to simplify the firm and has made 16 disposals to date, primarily of non-core investments, raising £704m. As a result of this, and a renewed focus on working capital, the firm has reduced its net debt to £925m compared to the same period last year.

The company still believed there was a "significant opportunity" to develop its Kantar market research arm into the world's leading data, insights and consulting company, but said the best way to unlock this potential would be with a strategic or financial partner. The Board had approved a formal process to review the strategic options that will maximise share owner value, with WPP expected to remain a share owner with strategic links. Preparations were underway, involving Kantar management, and unsolicited expressions of interest had been received.

In other company news, Group Finance Director, Paul Richardson, had decided to retire after 22 years. He would leave in 2019, working with WPP to ensure a smooth transition as we appoint his successor.