WPP Sees Record Profits

Global advertising and communications group WPP this morning announced pre-tax profit growth of 43% to £365.7 million for the year ended 31 December 2000. The record profits include the incorporation of the Young & Rubicam advertising network which WPP acquired in May last year to create the world’s largest advertising group (see WPP Buys Young & Rubicam For $4.7bn). Revenues at the combined group grew 37% to £2.98 billion.

Combined advertising and media investment management revenues at Ogilvy & Mather Worldwide, J. Walter Thompson, Y&R Advertising, Conquest (now Red Cell), MindShare and The Media Edge rose by almost 34% year on year.

“In 2000 the worldwide advertising industry grew approximately 6-7% with marketing services growing at 7-9%. Our company continued to strengthen particularly in the United States, the United Kingdom and Continental Europe. In 2000, the group believes it increased its worldwide market share very significantly,” the statement said.

As in the past WPP said that network TV inflation, declining audiences and the fragmentation of traditional media have all contributed to clients’ experimentation in new media and non-traditional alternatives.

At 10:30am today WPP shares were trading down 5p at 823½p, after an initial improvement following the profits announcement.

WPP: 020 7408 2204