The gathering “storm clouds” over marketing budgets failed to darken an upbeat outlook from WPP, as Sir Martin Sorrell’s advertising group shrugged off macro-economic uncertainty and doubled its acquisition budget for the second time this year.
Reporting a 37 per cent increase in first-half profit on Wednesday, the chief of the world’s largest marketing services group by revenues, suggested that operating margins could continue to improve next year even if revenue growth slows.
WPP’s confidence comes after recent results from competitors Interpublic and Publicis missed analysts’ forecasts, amid concern that media spending would be hit by weaker business confidence. On Wednesday shares rose 7.4 per cent to 623p, having declined by more than 25 per cent in the year to date.