Aided by the London 2012 Olympics UK revenues were up 7.7% to £1.27bn, despite billings dropping to £44.4bn - 'reflecting the strength of the £ sterling'. North American revenues were up to £3.55bn, an increase of 4.7%.
These positive results foreshadow of cautious optimism for WPP in 2013, with 65 acquisitions in 2012, "28 were classified in new markets (of which 20 were in new media), 27 in consumer insight, including data analytics and the application of technology, with the balance of 10 driven by individual client or agency needs." Particular focus on emerging markets like Brazil, India and China are driven by Sorrell's eye on 2014, and the effect of global socio-political events.
Describing the U.S deficit as the "elephant in the room", Sorrell went on: "the decision to launch a referendum for Britain’s European Union membership, whilst no doubt being an astute political move, adds further uncertainty to the United Kingdom economy until after the next United Kingdom General Election in 2015.
"2013 looks to be another demanding year. There will be no maxi- or mini- quadrennial events and, as mentioned above, the United States deficit and debt remain ignored. 2014 looks a better prospect, however, with the World Cup in Brazil, the Winter Olympics in Sochi and, would you believe, another United States election - the mid-term Congressionals. The first two events will continue to reposition Brazil and Latin America and Russia and Central and Eastern Europe in the world’s mind, just like the Beijing Olympics did for China and Asia and the World Cup did for South Africa and the continent of Africa - and, possibly, London 2012 did for the UK."
The full financial report is available here.
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