Last 5 stories from Adbrands Weekly Update:
Adbrands Weekly Update
31st Oct 2013:
UK marketing services group Chime, best known as the former parent of Bell
Pottinger PR and current owner of VCCP, agreed to acquire US-based JMI, a
motorsports marketing agency, for a price that could reach $71m, depending on
future performance. However that deal is said to have prompted a new dispute
with Chime's biggest shareholder WPP, which is thought to believe the payout is
too high. Chime will need to raise additional capital to fund the deal, a move that could
further dilute WPP's stake. A similar difference of opinion was prompted by the
Chime board's willingness to accept the 2012 buyout of Bell Pottinger by Lord
Bell and Piers Pottinger. As a result, WPP indicated that it is considering a
sale of its shares in the group.
Adbrands Weekly Update 24th Oct 2013:
WPP released financials this morning, demonstrating that it has come out on top among the big four groups in terms of growth. Reported revenues for 3Q rose by more than 7% to almost £2.7bn, equivalent to an organic increase (or like-for-like as WPP calls it) of 5.0%. That's significantly
above expectations, and an exceptional new business haul in excess of $3.7bn took the year-to-date total to almost $7.9bn, well ahead of the other groups. Like Omnicom and Publicis, the UK delivered standout performance with LFL growth of 8.1%. However, unlike its rivals, Western Europe also did
well for WPP with uplift of 2.6%. North America contributed 4.6%. WPP doesn't report profitability for 3Q or 1Q.
Adbrands Weekly Update 29th Aug 2013:
WPP finally reported 2Q and half year results, rather later than its peers, whose numbers were published in July. The figures were solid but not spectacular. Inevitably the shadow of the proposed
Publicis Omnicom merger - which would relegate WPP from the top spot among marketing groups - hovers over them. Revenues were up 7.1% on a reported basis to £5.33bn (or $8.21bn), with like for like growth - WPP's version of the other groups' organic metric - of 2.7% for the quarter. (That compared
to organic growth of 3.2% for Publicis, 2.8% for Omnicom and 2.2% for Interpublic). The UK was WPP's best-performing market, with impressive growth of 5.4%. The rest of Western Europe slumped 1.2%, while North America managed a positive 2.4%. The weakest segment by discipline was PR & public
affairs which suffered a slight decline in both revenues and profit for the half. Pretax profits jumped 19% for the half to £427m, but a higher tax charge reduced net profit to £315m, up only 3% compared to last year.
Adbrands Weekly Update 4th Jul 2013:
WPP has scored a significant victory in Chanel's global media review. That account was previously handled by MEC, but during the pitch process WPP executives were able to up-sell the client to a
rethink of its entire marketing budget. They probably made discreet chuckling noises every time that widely panned Brad Pitt campaign - developed inhouse - was mentioned. The result is that Chanel has agreed to hand WPP all of its marketing business, creative and digital as well as media. This will
be managed by newly created unit Plus, another of WPP's collection of dedicated client-centric agencies. It will comprise a hand-picked team drawn from MEC and sister network Mindshare as well as Ogilvy and AKQA. Job well done, Sir Martin.
Adbrands Weekly Update 27th Jun 2013:
WPP unveiled a new name for the sales promotion and activation giant being created from the merger of Ogilvy Action and G2. The newly baptised Geometry Global will launch as the world's biggest such
organisation, with operations in 56 markets and around 4,000 staff. In addition to the existing Ogilvy Action and G2 networks it will also take charge of JWT Action, the existing US joint venture between JWT and Ogilvy Action, although that unit will retain separate branding. The Ogilvy Action and
G2 names will be phased out. Current JWT Europe chairman Toby Hoare takes on an additional role as Geometry chairman. Ogilvy Action's Steve Harding was
appointed as CEO with G2's Steve Schetlick as COO & CFO. Individual country leaders will be drawn from one ort other agency. G2 Joshua's Sarah Todd will lead Geometry UK.