WPP paints upbeat picture for 2008
•
29 Feb 2008, 18:40
•
Journals
WPP, the world’s second-largest advertising group, painted a bullish outlook for the coming year on Friday, as it announced revenue growth of 5 per cent to £6.18bn.
The company said the subprime crisis had had “little or no impact” on its financial performance and predicted that on the basis of preliminary data, 2008 should be “a better year than 2007”.
WPP owns advertising agencies such as JWT, Ogilvy & Mather Worldwide and Young & Rubicam, and its outlook on advertising is regarded as a bellwether.
The group said pre-tax profit was up 5.5 per cent to £719m for the year ended December 31, boosted by a number of significant new wins at the end of last year, including accounts from AT&T and Dell.
It said it continued to see faster growth from emerging markets in Asia-Pacific, Latin America, Africa and the Middle East. Together, these now account for 24 per cent of revenues.
WPP also continued to see healthy growth from the US and UK markets. The US posted like-for-like growth of almost 4 per cent, while continental Europe improved significantly in the second half of the year. The UK market reported like-for-like growth of 2 per cent in the second half.
Sir Martin Sorrell, chief executive, also announced the acquisition of Team Group, which operates in the Middle East and North Africa, for an undisclosed sum.
Some analysts have predicted that 2008 could see the beginning of a slowdown in advertising rates, but Sir Martin has been more sanguine and on Friday the company reiterated its bullish forecast.
The industry would continue to benefit from the build-up to the US presidential elections and the Beijing Olympics, as well as the European Football Championships, it said.
However, despite the confident outlook for 2008, WPP said a “slowdown”, although not a recession, would probably be hard to avoid in 2009 as a new US government might cut spending.
The following year, however, should be a better year economically and a good year for advertising, buoyed by the football World Cup in South Africa, the Winter Olympics in Vancouver and the mid-term congressional elections in the US
Diluted earnings per share were up more than 9 per cent to 46p. The company boosted its final dividend by 20 per cent to 9.13p a share, making a total for the year of 13.45p a share.
WPP shares were up 4½p to 616p in early London trading.
The company said the subprime crisis had had “little or no impact” on its financial performance and predicted that on the basis of preliminary data, 2008 should be “a better year than 2007”.
WPP owns advertising agencies such as JWT, Ogilvy & Mather Worldwide and Young & Rubicam, and its outlook on advertising is regarded as a bellwether.
The group said pre-tax profit was up 5.5 per cent to £719m for the year ended December 31, boosted by a number of significant new wins at the end of last year, including accounts from AT&T and Dell.
It said it continued to see faster growth from emerging markets in Asia-Pacific, Latin America, Africa and the Middle East. Together, these now account for 24 per cent of revenues.
WPP also continued to see healthy growth from the US and UK markets. The US posted like-for-like growth of almost 4 per cent, while continental Europe improved significantly in the second half of the year. The UK market reported like-for-like growth of 2 per cent in the second half.
Sir Martin Sorrell, chief executive, also announced the acquisition of Team Group, which operates in the Middle East and North Africa, for an undisclosed sum.
Some analysts have predicted that 2008 could see the beginning of a slowdown in advertising rates, but Sir Martin has been more sanguine and on Friday the company reiterated its bullish forecast.
The industry would continue to benefit from the build-up to the US presidential elections and the Beijing Olympics, as well as the European Football Championships, it said.
However, despite the confident outlook for 2008, WPP said a “slowdown”, although not a recession, would probably be hard to avoid in 2009 as a new US government might cut spending.
The following year, however, should be a better year economically and a good year for advertising, buoyed by the football World Cup in South Africa, the Winter Olympics in Vancouver and the mid-term congressional elections in the US
Diluted earnings per share were up more than 9 per cent to 46p. The company boosted its final dividend by 20 per cent to 9.13p a share, making a total for the year of 13.45p a share.
WPP shares were up 4½p to 616p in early London trading.
you are so fucking retarded
you are so retarded
stupid retard
pulza ownage 10/10
lol funneys
stupid retard