WPP reports 5.8% fall in like-for-like revenue

WPP has reported a 5.8% year on year fall in like-for-like revenue for the first three months of the year, saying that it would not meet its full year forecasts.

However, its UK operations increased revenue by 16% year on year in the first quarter, totalling £251.1 million.

Global revenue rose by 36% to £2.12 billion compared with £1.6 billion in the first three months last year, reflecting the acquisition of TNS in October and the effects of the weaker UK currency.

The company said in a statement: “The final quarter of 2008 and especially December, with flat group revenues, were better than expected, the first three months of 2009 were markedly different, although the rate of decline eased in March, perhaps reflecting some stabilisation or maybe restocking of inventories.”

Revenue at WPP’s US operations dropped less than 1%, while Latin America, Africa, Asia and the Middle East rose 15%.

There was continued strong revenue growth in Continental Europe in Q1, up 25%.

Global revenues from the company’s advertising and media investment management operations fell 3.5% in Q1 2009 to £812.1 million.

WPP said that although the second half of 2009 would continue to be tough, it was likely to improve relatively, with any recovery probably coming in 2010.