WPP’s full year 2007 results show like-for-like revenue growth in line with forecasts, adding that 2008 should be better.
The full year results, to December 31, show a 5% year-on-year increase in revenue to £6.18 billion and an adjusted pre-tax profit increase of around 7% to £817 million.
2007 also saw WPP increase its “broadly-defined internet-related revenue” to $2.8 billion (£1.4 billion) or 23% of worldwide reported revenue.
WPP said: “2008 should be a better year than 2007, against the views of most economic forecasters, who predict a gloomy 2008.
“Despite the severe financial crisis, the ‘real’ economy continues to grow and our clients continue to expand, particularly in the BRICs and the Next Eleven markets, addressing the twin opportunities of geographical expansion and technological change.”
However, it added that it “seems inevitable that “the ‘real’ world will at some point in time be affected by the private equity, sub-prime, insurance monoline, and housing market crises”.
“In our view, this seems more likely to be in 2009, when a slow-down (not a recession) in the United States will be hard to avoid.”
It added that the FIFA World Cup in South Africa, the Winter Olympics in Vancouver and the mid-term Congressional elections in the United States should help stimulate the economy in 2010.
WPP said that it will maintain operating targets of 15.5% this year and 16% for 2009.
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