Advertising titan, WPP plc’s (WPPGY) wholly-owned subsidiary, Wunderman, recently announced the combination of its digital business in Austria with the online marketing business of PXP interactive services & solutions AG (PXP).
Wunderman, currently the major stake owner in the combined business, is to be named Wunderman PXP GmbH. The combination will enable Wunderman leverage from PXP’s solid client base, including Nokia, Austrian Lotteries and ZDF.
PXP was founded in 1993 and is based in Austria. It employs over 60 people and earned over €5.3 million in gross revenue for the year ended December 31, 2010. Goss assets for the same period were €4.6 million.
WPP plc with its growing emphasis on new and rapidly developing markets, new media and consumer insights has a bright future ahead.
The company appears to be very well placed to reap the benefits from its dominant market share in many areas. Margins and profit growth is also adequately supported by the company’s pricing power. Moreover, revival in the global economy has enhanced advertising spending by the companies across the world.
In the first quarter 2011, the company’s top line grew 7% year-over-year to £2,223 million (US$3,557 million), attributable to strength across all geographical regions and communication services sector. On a constant currency basis, revenues grew by approximately 8.4%. Excluding the impact of acquisitions and currency fluctuations, revenues were up 6.7% in the reported period.
For the full fiscal year 2011, management expects revenue growth, excluding the impact of acquisitions and currency fluctuations, to be over 6%. Based on the results in the first three months of 2011, management anticipates that its full year margin would exceed the company’s margin improvement target of 0.5%.
WPP plc faces competition from its peers like Interpublic Group of Companies Inc. (IPG), Omnicom Group Inc. (OMC), and Publicis Groupe SA (PUBGY.PK).
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