WPP Group, Havas revenues increase
David Jones (left) and Martin Sorrell
WPP Group's branding and identity, healthcare and specialist communications division reported full-year 2011 like-for-like revenue growth of 6.9% to $15.9 billion, the holding company said Mar. 1. The unit, which includes direct, digital and interactive marketing agencies, also reported a slight like-for-like revenue decline in the fourth quarter. Havas, which also reported 2011 financials on Mar. 1, said revenue increased 5.6% organically to $2.1 billion, compared with the prior year.
WPP's branding and identity, healthcare and specialist communications division unit generated 25.1% of the company's overall revenue during fiscal 2011. The group's overall revenue increased 7.4% compared with the previous year.
OgilvyOne performed strongly for the direct and interactive promotions group in Europe and North America, WPP said in its earnings statement.
The holding company's operating profit increased 16.3% to $2.3 billion, compared with 2010. The advertising and media investment management business generated 41.5% of the company's overall revenue in 2010, an increase of 11.4% for the division, compared with the previous year. The consumer insight division generated 24.5% of overall revenue, a 1.1% increase from the previous year.
WPP's North American business generated the largest portion, 33.8% or $5.4 billion, of the company's revenue.
Havas reported $2.2 billion in 2011 revenue, a 5.6% organic growth increase compared with the prior year. The holding company's income from operations was up 13.4% for the year to approximately $286 million, and net income grew 7.3% to about $156 million.
North American revenue for the year was approximately $676 million, according to the present conversion rate from Euros to dollars, representing 6.8% organic growth compared with 2010.
On the March 1 earnings call with CEO David Jones, Havas announced that is dropping its Euro RSCG Worldwide network brand name and will be replacing the name with Havas Worldwide on Sept. 1. The company will also add Havas Digital, a department the company said reflects their new-media skills.
Havas also owns and operates creative agency Arnold Worldwide. Organic growth represents change in revenue without measuring the impact of acquisitions or disposals.