WPP Reveals Low Q3 Results

WPP has reported a 3% year on year revenue increase in the third quarter to £1.72 billion, with the communications group admitting that the financial crisis has hit its UK and US businesses.

The group said today that “like-for-like growth across the [third] quarter was similar in all three months, although below original expectations”.

WPP also said that a number of targets were under pressure but said they would do everything to try and achieve their operating margin target of 15,5% for 2008, though it “will not be easy”.

Earlier this week, Sir Martin Sorrell, who heads up the world’s second largest marketing services group, said he expected 2009 to be a tough year, with no real recovery until 2010 (see Sorrell Predicts Difficult 15 Months For UK Economy).

The group benefited from the strong euro and US dollar against the pound but fell down on the “Beijing bounce” after the Olympics failed to be as successful as predicted.

However, North America was WPP’s weakest region with revenues completely static in the third quarter, while the UK experienced currency growth of just 2.9% year on year, down from 4.6% growth in the first half of the year.

The trading statement released today said: “Overall the second, more severe leg of the financial crisis, which started a few months ago, has had the most impact on the communications services markets of the US and the UK.”

WPP: 020 7408 2204 www.wpp.com