WPP Results Beat Expectations, But Shares Dip
WPP, the global advertising and communications group, has beaten expectations with its full year financial results showing a pre-tax profit of £490 million, up 29% on the previous year, despite the prevailing tough advertising market conditions.
Despite the strong performance, WPP says that it expects advertising growth to remain flat in 2002, with no predicted organic growth at the company. Organic revenues for the year ended 31 December 2001 were down by 3.0%, which suggests a very poor Q4, with revenues declining by 12% – well below the performance of WPP’s peer group, according analysts at ABN Amro.
Merrill Lynch: Buy Credit Lyonnais: Hold ABN Amro: Hold
By mid-morning today shares in WPP were down 13p at 664p, following the release of the figures.
