WPP continues to strengthen non-advertising business

by Staff,, Brand Republic 24-Apr-03, 10:40

LONDON - WPP Group has continued to strengthen its business in important growth sectors and markets, with the acquisition of a large stake in a leading market research and media firm in Portugal.

The acquisition of the 40% stake in Lisbon-based Marktest Investimentos will be used to expand the reach of WPP's market research arm Kantar Media Research.

The Portuguese firm specialises in market research, media audience management and advertising investment planning group. Founded in 1980, it employs 210 people and had revenues of over €10m (£6.9m) for the year ended December 31 2002.

The remaining 60% of Marktest's share capital will remain owned by the current shareholders, who will continue to be responsible for the group's management.

In a statement, the Sir Martin Sorrell-led WPP said that the acquisition of Marktest reinforces Kantar's ability to provide clients with integrated research techniques.

Earlier this year, WPP bought the Zurich-based advertising agency Guye Benker as part of its Young & Rubicam network, as well as completing the acquisition of HHCL & Partners.

Yesterday, Morgan Stanley forecasted a fall of 8.8% in first-quarter revenues for WPP, but said that there was a better outlook for the second half of 2003.

The investment bank said that the advertising giant's strong quarter of new-business wins will not be enough to outweigh the threat of budget cuts at its biggest client Ford, which represents 7% of its revenues. WPP is due to post its results on Friday.

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