WPP enjoys 'significant' recovery in 2010

4th Mar 2011 07:03

Advertising giant WPP made over £1bn for the first time ever in 2010, but violence in the Middle East, which accounts for 1.7% of revenue, is a worry.Headline profit before tax increased 27.3% to £1.03bn on revenue up 7%, or 5.6% at constant currency, to £9.33bn, while like for like sales grew 5.3%. Billings rose 1% to £42.68bn.And business grew at its fastest rate in 10 years during the fourth quarter. Like for like revenue was up 8.5% and December registered the first monthly double-digit growth rate since January 2001. Chiefs predict like for like revenue for 2011 will be similar to last year at around 5%, more than the 3-4% predicted by analysts, though the balance of growth is seen shifting from the west to the east to China and India, south to Brazil and Latin America and south-east to Africa.But unrest and revolution in Tunisia, Egypt, Bahrain and Libya could have implications for other countries such as Jordan or Saudi Arabia. The Middle East is worth $300m of revenue.A second interim dividend, up 15% to 11.82p per share, makes a total for the year of 17.79p, also up 15%.