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.

What is more worrying for the industry is that WPP, which is something of a barometer of the ad climate, has warned that it seems unlikely that the remainder of 2002 will show any significant improvement.

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, 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%.

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