Credit crisis has no impact on bullish WPP

WPP, the world’s second-largest advertising group, is optimistic for 2008 as it said underlying revenue growth would be better in 2008 than 2007.

The group announced revenue growth of 5% to £6.18 billion, boosted by a number of significant new contract wins at the end of 2007, including accounts from AT&T and Dell.

The company added that the sub-prime crisis had had ‘little or no impact‘ on its financial performance.

Analysts said they expected the lack of any negative surprises and the relatively robust outlook statement to restore confidence.

The group said it continued to see faster growth from emerging markets in Asia-Pacific, Latin America, Africa and the Middle East. Together, these now make up for 24% of revenues.

The group owns advertising agencies including JWT, Mather Worldwide, Ogilvy and Young & Rubicam.

For 2008, it said it expected worldwide advertising and marketing services spending to increase by at least 4% with WPP to grow in excess of that and therefore increase share.

Martin Sorrell, WPP’s Chief Executive, has said for some time that 2008 ad budgets would be boosted by the US Presidential election, the Beijing Olympics and the Euro 2008 Football Championships.

However, in spite of the bullish outlook for 2008, Mr Sorrell said a ‘slowdown‘, although not a recession, would probably be hard to avoid in 2009 as a new US Government might cut spending.

In early London trading, WPP shares were up 4½p to 616p.

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