Ireland-based advertising agency
WPP Group Plc.
) recently penned a contract to acquire stake in a Myanmar based
advertising firm, Today Advertising Corporation. The acquisition
will be given effect through the company's wholly-owned global
advertising and communications entity, Ogilvy & Mather. The
financial terms of the agreement were not disclosed.
The strategic acquisition supports the company's expansionary
plans and operations in fast growing emerging markets and allows
the company to access the vast untapped markets in these regions.
Besides, WPP Plc also targets operational expansions in a total of
108 countries through its various acquisition activities.
In the first 5 months of 2012, WPP plc's wholly-owned operating
companies carried out a series of acquisitions. Among these,
Kantar's $1.2 million investment in Enprecis, Burson-Marsteller's
acquisition of assets of Crowdverb and Carnation Internet Tanácsadó
Zrt deserve special mention. These acquisitions are expected to
have a positive impact on the company's growth prospects.
Earlier, in the first quarter of fiscal 2012, WPP Plc witnessed
about 7.6% augmentation in revenue from the prior-year quarter.
Geographically, the company fared well posting a noticeable growth
of 11.2% in Asia Pacific, Latin America, Africa, the Middle East
and Central & Eastern European regions. Additionally, revenues
from the company's Asia-Pacific businesses were around $4
The company established itself in the diverse markets through
providing advertising and other specialty communications services
globally but it should be aware of the stiff competition from its
rivals. It directly competes with its peers, such as
AirMedia Group Inc.
Clear Channel Outdoor Holdings Inc.
The current Zacks Consensus EPS Estimates for WPP plc are $5.57
and $6.23 for the fiscal years 2012 and 2013, respectively. The
company currently carries a Zacks #3 Rank which denotes a
short-term (1-3 months) 'Hold' rating. We currently maintain a
Neutral recommendation on the stock.
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