WPP Warns Of Little Ad Improvement This Year
Pre-tax profits at global advertising network, WPP, fell by almost 30% in the six months to 30 June 2002, the company announced this morning. Turnover fell by 2.0% to £8.8 billion, following a very tough period for the advertising industry.
In constant currencies revenues at US businesses were down 6.3%; the UK was up 3.9%, continental Europe up 7.6% and the rest of the world up 3.3%. However, the acquisition of Tempus late last year has boosted European figures (see WPP Will Buy Tempus), which may otherwise be slightly negative, according to analysts at Merrill Lynch.
On a sector basis, public relations revenues were down 11.2%, whilst advertising and media rose by 0.5%; market research was up 6.8%.
Shares in WPP were down 28p at 473p by midday today.
