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WPP slashes growth forecast

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By John Glenday, Reporter

October 28, 2011 | 2 min read

Advertising giant WPP has slashed its growth forecast 6% to 5% after reporting lower than expected organic revenue growth of just 4.7% in the third quarter.

The contraction reflects worsening global economic conditions in recent months with a steady decline in growth of the world’s largest marketing services company dipping steadily from 6.7% in the first quarter.

WPP’s below par performance is at odds with its main rivals, Omnicom and Maurice Levy’s Publicis - which reported growth of 7.2% and 6.4% respectively.

Sir Martin Sorrell, blamed his firms waning fortunes on anaemic growth in North America and Western Europe, although the UK bucked this trend with growth of 6.7%.

Emerging markets in Asia, Latin America and Eastern Europe now account for the bulk of WPP’s growth, expanding by 10.5%.

In a statement WPP stated: “Although it is too early to compile or estimate budgets for next year, despite current uncertainties, the prospects do not look dire. The rubber is really likely to meet the road, however, after the US presidential election in late 2012 and into 2013, when a newly elected American president will finally have to deal with the US deficit."

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