WPP sees higher profits in second half

30th Oct 2009 07:01

Advertising giant WPP expects the second half to show a marked improvement in profitability and said overall conditions are "less worse". In the third quarter reported revenues rose by 16.7% to £2.007bn. Revenues, in constant currencies, were up 6.7%, reflecting both the acquisition of Taylor Nelson Sofres and the weakness of the pound sterling against the US dollar and Euro. Excluding the impact of acquisitions and currency fluctuations, like-for-like revenue growth was down 8.7%, a slight increase on the first half's decline of 8.3%, but well below the second quarter's decline of 10.5%. Like-for-like gross margin was down less at -8.3%. July, August and September all showed "less worse" revenue growth against April, May and June. 'As the company's revenue growth figures for the third quarter indicate, things are certainly "less worse" than the second quarter and July, August and September, have all shown improvement over April, May and June,' said the group.'The second half is forecast to show a marked improvement in profitability, both absolutely and in terms of maintaining second half margins at prior year levels. Based on the latest third quarter revised forecast, the group is still on course to achieve this margin target for the second half of 2009.'