WPP share price falls as group acquires minority stake in Swedish online TV firm

on Mar 10, 2015
Updated: Oct 21, 2019
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WPP Plc (LON:WPP) has acquired a minority stake in Sweden-based over-the-top TV service FlowNetwork, a supplier of technology and content to a number of regional newspapers in the Scandinavian country.The firm is also co-producer of new Swedish drama series, “Gåsmamman”.

In a statement to the London Stock today, the world’s largest advertising company indicated that the move would strengthen its capabilities in the digital media sector. WPP aims to deliver 40-45 percent of revenue through digital in the next five years. According to the statement, WPP’s digital revenues came in at $6.9 billion in 2014, which was 36 percent of the company’s total revenue last year.

At the same time, the investment will also strengthen WPP’s foothold in Scandinavia, where the company generates over $500 million in annual revenue and employs more than 2,500 staff. In Sweden alone, WPP companies generate over $180 million per year and employ over 800 people.
In today’s trading, WPP shares were down 1.5 percent at 1,536.00p, as of 10:43 UTC. The company’s stock has gained 14.4 percent since the start of the year.

According to the Financial Times, the 23 analysts offering 12 month price targets for WPP have a median target of 1,550p, with a high estimate of 1,742p and a low estimate of 1,250p. As of February 28, 2015, the consensus forecast amongst 37 polled investment analysts covering WPP has it that the company will outperform the market. This consensus estimate has been maintained since October 16, 2009, when the sentiment of investment analysts improved from “hold”.
As of 13:06 GMT, Tuesday, 10 March, Apple Inc. share price is $127.12.

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