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WPP plc

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WPP operates in a highly competitive and fragmented communication services industry. The company depends on a limited number of big clients for a significant portion of its revenues. Loss of any of these big clients could adversely impact the company’s prospects. In addition, significant international operations expose it to risk of fluctuation in foreign exchange rates, since most of its revenues come from countries other than the U.K. However, WPP reported strong third-quarter 2016 revenues, combating significant currency headwinds. A geographically superior position in new markets and functional strength in new media and data investment management will help WPP in achieving steady revenue growth. WPP is also committed to return value to its shareholders through steady payment of dividends and stock repurchases.

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