Pre-Tax Profits Rise 16% At WPP

WPP this morning announced a 2.9% rise in turnover from £7.1 billion to £7.3 billion during the year ended December 31, 1997.

Pre-tax profits jumped 16% from £153.3 million to £177.4 million as the group said its clients would be looking at non-traditional alternatives to marketing products as the cost for advertising on television increased.

“Considerable progress was again made in 1997 despite the strength of sterling and economic turmoil in South East Asia,” WPP said in a statement. It went on to say: “However, there is still a significant profit opportunity in matching the operating margins of the best-performing competition. Consequently, the group will increasingly focus on improving its competitive position in the faster growing segments of the communications services industry.”.

The combined advertising revenues at J. Walter Thompson Company and Ogilvy & Mather Worldwide rose by 9.3% with both companies generating new billings of £191 million and £324 million respectively.

WPP: 0171 408 2204