WPP reports disappointing Q1 results

WPP reported a 35.9 per cent increase in total revenues 2008 to £2.117 billion (US$3.08 billion), buoyed by the purchase of TNS. Yet, on a like-for-like basis, WPP saw revenues slump 5.8 per cent, attributed to cuts in client spending due to the worsening economic environment. It also reported £960 million of new business billings for the first quarter, up from the same time in 2008.
Across the globe, WPP classified Asia-Pacific among the “least affected” regions of the world.

In Asia-Pacific, Australia and New Zealand, Japan, Singapore and South Korea were categorised as markets hit more drastically than their neighbours, while Mainland China and India displayed year-on-year growth. 

Areas including Latin and South America also showed growth.

The company, considered the largest advertising- and media-agency holding company according to revenue, initially forecast a two per cent revenue drop in 2009 following a 2.7 per cent increase in 2008.

“The first half of 2009 will clearly be very difficult, with the second half, although continuing to be tough, likely to improve relatively. Any recovery, of sorts, will probably come in 2010,” the company’s report reads. “We are in the process of reviewing our quarter one revised forecasts, but early indications are that like-for-like revenues will be below budget.”

In terms of discipline, WPP reported that advertising and media investment management was least affected during this period. Public relations and information and consultancy were more affected, while “branding and identity, healthcare and specialist communications (including direct, internet and interactive) were most affected.”