Sorrell: Australia ‘extremely important’ for WPP
After reporting 6.7% revenue growth for the first quarter of 2011, to GBP2.2bn (A$3.4bn), WPP chief executive Sir Martin Sorrell has said that he sees Australia as an “extremely important” strategic market for the group in Asia Pacific, even though Australia contributes only 3-4% to group revenues.
He told Mumbrella: “Strategically, Australia is important in the context of Asia Pacific as it accounts for about 15-20% of revenues, depending on whether you are including or excluding associates. As Australia increasingly ‘faces’ Asia Pacific rather than Europe or the United States, Australia is extremely important in the context of the faster growing Asian markets like China, India and Vietnam.”
Sorrell noted that in 2010 Australia grew slower than the region. In the first quarter of this year Asia Pacific was up 12.5% on a constant currency basis, with Mainland China and India showing combined growth of 18.4%.
“In the first quarter of 2011, Australia grew at about the same rate or faster than the group, depending if you are including or excluding associates. For the rest of the year it should grow at a similar rate as the group,” he predicted.
Australia contributes about 3-4% of WPP’s revenues, depending on whether associates are included, he pointed out, adding that WPP employs 1,900 people in Australia, 3,700 including associates.
