WPP Is Expected To Outperform The Market Tomorrow

S4 Capital

WPP, the world’s largest advertising group is expected to outperform the market in its third quarter result that is due to be released by tomorrow, 8am UK time.

WPP has 50.1% stake in ScanGroup WPP, the largest advertising group in Africa with major influence across Central, Eastern and Southern Africa markets.

Founded in 1982 and listed in 2006, Scangroup offers clients a comprehensive and integrated range of advertising and marketing services in advertising, media investment management, marketing consultancy, public relations, digital and experiential marketing.

Scangroup employs over 790 people in its offices in Kenya, Ghana, Nigeria, Rwanda, Tanzania, South Africa and Uganda and buys media in most of the markets in sub-Saharan Africa. Scangroup’s consolidated revenues as at 31 December 2012 were KES 4.2 billion, with gross assets of KES 8.6 billion at the same date.

FT analysts polled as at 21st of October all agreed that WPP will outperform the market. This has been the consensus forecast since the sentiment of investment analysts improved on Oct 16, 2009. The previous consensus forecast advised investors to hold their position in WPP PLC.

The outlook for WPP is looking good as non of the analysts polled advised investors to sell their stake. As a matter of fact, they unanimously advised that investors should hold their stake.

As regards what WPP is expected to report as revenue, it is worthy to note that WPP plc reported semi annual 2016 revenues of GBP6.54 billion. This bettered the GBP5.78 billion consensus of the 6 analysts covering the company. This was 11.94% above the prior year’s period results.

Dividends wise, in 2015, WPP PLC reported a dividend of 0.45 GBP, which represents a 16.99% increase over last year. The 26 analysts covering the company expect dividends of 0.55 GBP for the upcoming fiscal year, an increase of 22.40%.

Corporate information

WPP plc (WPP) is a holding company engaged in providing communications services. The Company comprises companies in a range of disciplines, which include advertising, media investment management; data investment management; public relations and public affairs; branding and identity; healthcare communications; direct, digital, promotion and relationship marketing, and specialist communications. The Company operates through four segments: Advertising and Media Investment Management; Data Investment Management; Public Relations & Public Affairs, and Branding & Identity, Healthcare and Specialist Communications. The Company has operations in over 110 countries.

The Company offers global, national and specialist advertising services from a range of international and specialist agencies, which include Bates CHI&Partners, Grey, JWT, Ogilvy & Mather Advertising and Y&R. It provides media planning and buying, and specialist sponsorship and branded entertainment services from GroupM companies.

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