WPP has acquired a minority stake in FlowNetwork, the Swedish broadcast content provider, as the global advertising and marcoms giant targets growth in its digital revenue.
The size of the stake and the amount paid have not been disclosed.
FlowNetwork delivers its programmes via the internet and supplies a number of Sweden’s regional newspapers with technology and content. The company is co-producer of the new Swedish drama series Gåsmamman.
WPP, led by Sir Martin Sorrell, said the investment continued its strategy of developing integrated services in “fast-growing and important markets and sectors and strengthening its capabilities including digital media”.
The company has set a target of 40 to 45 per cent of total revenue to be derived from digital in the next five years. Digital represented 36 per cent ($6.9bn or £4.6bn) of revenue in 2014.
Earlier, WPP reported a 2.5 per cent like-for-like increase in revenue in its PR and public affairs group in 2014 to $1.3bn (£0.86bn).
The group saw a 5.1 per cent like-for-like jump in revenue in the fourth quarter.
WPP cited “strong growth in North America, the UK, and Asia-Pacific” in its earnings statement and singled out Burson-Marsteller, Cohn & Wolfe and specialist PR and public affairs businesses for strong performances. However, it said “H+K Strategies [was] more challenged”.
