WPP announce fall in 2008 profit but are confident of 2010 recovery

The world’s second-largest advertising company, WPP Group, has reported that profits in 2008 fell by 5.8 percent.

A weak second half of the year wiped out strong trading at the start reporting a net profit of 439.1 million pounds, down from 465.9 million in 2007.

This morning the company lowered its profit targets for the year, although they are confident of an upturn come 2010, although expected revenues for 2009 are likely to be down by 2 per cent on the previous year.

Sir Martin Sorrell, the founder and chief executive, explained in a report at the end of last year in The Times that 2010 will see an upturn in the business and is still confident that this is the most likely outcome in the aftermath of the economic downturn.

The outlook for the advertising and marketing services industry worldwide for the longer term is still favourable, as the combination of overproduction and the lack of good staff in the current climate means that WPP clients need to continue to differentiate themselves and their products in the marketplace.

The continued growth on emerging countries such as Brazil, Russia, India and China will offer significant opportunities for further expansion.

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