WPP’s revenue decline eases slightly in Q3

WPP’s third quarter results show a 8.7% revenue decline, which is an improvement on the advertising firm’s 10.5% Q2 drop.

The company’s share price increased by 4.2% to 568p in early trading today following the news that the downturn is slowly easing, according to reports.

Sir Martin Sorrell, WPP’s chief executive, said the recovery is due to increasing consumer confidence, which has in turn filtered through to advertising budgets.

In WPP’s trading update, the company said its revenue growth for July, August and September is “less worse” than in April, May and June.

Sorrell forecasts that this slowdown will continue through to 2010.  “There is little doubt that consumer and corporate confidence has recovered somewhat from the panic levels of the fourth quarter of 2008 and first quarter of 2009,” he said.

“Confidence, however, remains fragile amongst consumers, because of the shadow of high unemployment levels and amongst corporates, because Armageddon and Apocalypse now were barely avoided in September 2008.

“Whilst the hearts of CEOs and CMOs are stronger and their minds clearer, increased confidence is still not transferring to their cheque-writing hands.”