WPP Ventures in Vietnam - Analyst Blog

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Advertising titan, WPP plc's ( WPPGY ) wholly-owned subsidiary Burson-Marsteller, recently announced to have entered into a joint venture with Vietnam-based Chu Thi Company Limited to form Buroson-Marsteller Vietnam.

Burson-Marsteller, WPP's global public relations and public affairs firm, will capture a majoirty stake in the joint venture, while the other party in the venture, Chu Thi Company would be Vietnam's leader in content industry. The formation of the venture is subject to regulatory approvals.

WPPGY aims at expanding its operations in fast growing emerging markets through acquistions and strategic ventures. Vietnam is one of the leading emerging markets, where WPP's existing operations generate roughly US$50 million. 

In the recently reported preliminary results for the fiscal year 2011, WPP Group reported diluted pro forma earnings per share of £0.677 ($5.45 per ADR), up 19.4% (20.3% in constant currency) year over year. Results were above the Zacks Consensus Estimate of $5.10. Revenue jumped 7.4% to £10,022 million ($16,135 million) and was up 8.4% on a constant currency basis due to the strength in pound sterling versus the US dollar and Euro.

The current Zacks Consensus EPS Estimate for WPP plc is $5.75 and $6.30 for the fiscal years 2012 and 2013, respectively. The estimate represents a year-over-year growth of 6.96% for 2012 and 9.52% for 2013.

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.


 
INTERPUBLIC GRP ( IPG ): Free Stock Analysis Report
 
OMNICOM GRP ( OMC ): Free Stock Analysis Report
 
WPP PLC ( WPPGY ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: IPG , OMC , WPPGY

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