WPP Posts Sharp Rise in First-half Profit

PARIS—WPP PLC, the world's largest ad holding company said Wednesday corporates are being increasingly cautious and risk averse as the firm posted a sharp rise in net profit, despite concerns about the strength of the U.K. pound and continuing geopolitical tensions.

Net profit rose more than 50% to £ 566.2 million ($888.2 million) in the first six months of the year, while revenue rose 6.8% to £ 5.84 billion, as acquisitions and growth in markets including the U.K and North America helped stem losses due to the strength of the pound against the euro and many emerging market currencies.

WPP said like-for-like revenue—a metric that excludes acquisitions and disposals—rose 2.3% in the first half. The rise was a slight reduction from the first quarter.

The advertising giant's latest earnings come as the industry grapples with a record number of big advertisers reviewing the agencies they use in an effort to cut costs.

WPP reaffirmed its full-year targets. The owner of agencies including Grey and Ogilvy & Mather said it expects full year like-for-like net sales—the firm's revenue measure which strips out costs linked to acquiring digital media space as well as currency swings, acquisitions and disposals—to grow more than 3%.

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August 26, 2015 03:05 ET (07:05 GMT)

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