WPPGY on Expansion Spree - Analyst Blog
February 15 2012 - 8:00AM
Zacks
Advertising titan, WPP
plc’s (WPPGY) wholly-owned subsidiary, tenthavenue
recently agreed to acquire China-based Wisereach in partnership
with GroupM; completion of the acquisition being subject to
obtaining regulatory approvals.
Wisereach is a leading mobile
marketing agency, founded in Beijing in 2009. Its client base
includes big names as Audi, Dell Inc. (DELL),
Michelin and Microsoft Corporation (MSFT).
In addition, XM Asia announced an
agreement for acquiring a stake in Indonesia-based, Magnivate. The
former is a unit of WPP’s wholly-owned operating subsidiary, JWT,
while the latter primarily engages in providing digital strategy,
social media communications strategy, rich media, online
advertising, search marketing and e-marketing.
Magnivate was founded in 1983, and
generated revenues of approximately IDR16 billion for the year
ended 31 December 2011. Companies like Danone, Frisian Flag,
Samsung and Unilever are among Magnivate’s well known clients.
Through these strategic
acquisitions, WPPGY aims at expanding its operations in fast
growing emerging markets and gaining access to vast untapped
markets in those regions. Most of the acquisitions are given effect
through the company’s wholly-owned subsidiaries.
The current Zacks Consensus EPS
Estimates for WPP plc is $5.13 and $5.62 for the fiscal years 2011
and 2012, respectively. The estimates represent a year-over-year
growth of 37.20% for 2011 and 9.52% for 2012. Estimate for the
fourth quarter stands at $3.43 per share.
Based in Dublin, Ireland, WPP Group
provides advertising and communications services worldwide. The
company provides stiff competition to its peers like
Interpublic Group of Companies Inc.
(IPG), Omnicom Group Inc.
(OMC) and Publicis Groupe
SA (PUBGY.PK).
We currently maintain a Neutral
recommendation on the stock.
DELL INC (DELL): Free Stock Analysis Report
INTERPUBLIC GRP (IPG): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
OMNICOM GRP (OMC): Free Stock Analysis Report
WPP GRP PLC (WPPGY): Free Stock Analysis Report
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