WPP Group suffers 8.7% organic revenue drop

WPP Group, which encompasses Ogilvy Advertising, Y&R, Mediaedge:cia, Wunderman, Grey and many more, has suffered an organic revenue fall of 8.7% but has declared that “less worse” economic conditions mean there has been “no Armageddon” for the industry.

Like-for-like gross margin, which WPP said was a better measure of competitive performance, fell by 8.3% — a smaller decline than in previous quarters.

Overall revenues, taking into account acquisitions and currency fluctuations, rose by 16.7% to around $3.3 billion.

In a trading statement, the company said: “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.

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

WPP said that UK revenues for the third quarter had fallen again when compared to the second quarter, reflecting the fact that while France, Germany and the US are now officially out of recession, the UK  is not.

In the US, the fall in revenues stood at 6.1%, compared with 9.4% in the first quarter. Other areas to see improvement were Western Europe and Asia Pacific.

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: