'Brutal' Year For WPP

The largest advertising group, WPP is hoping for a more positive and more stable year this year after profits fall by 11% last year as the economic downturn took its toll on thousands of companies.  Despite this however, the company did still turn a profit of £633m.

 ‘Staring into the abyss,’ was the phrase that chief executive, Sir Martin Sorrell used to describe last year, but he also added that he believes they may have turned the corner heading into this year.

Cuts were made last year to the 140,000 string workforce, however Sorrell also said that the firm are beginning to hire again.

Hopes are that 2010 will be far more stable for WPP, this belief was following however, by the phrase ‘famous last words,’ possible revealing Sorrell is more sceptical about coming months than he is wanting to show to the public.

"Although 2009 was a brutal year overall the group adjusted its cost base, after a difficult first six months, to falling like-for-like revenues," the firm said.

Continued growth is expected this year in Brazil, Russia, India and China over the course of this year, these have become known as the Bric countries.

Mr Sorrell also revealed India in particular as their main hope for a better 2010 due to the fact they are currently going through a consumer boom.

Major sporting events in 2010 are also carrying high hopes for advertising companies to bolster their revenues.  The winter Olympic Games have recently been held in Vancouver and there are also the upcoming Asian Games in Guangzhou along with possibly the largest event there is, the World Cup begins in June.  These are all great opportunities for advertising companies to augment their incomes.

Posted at 11:27AM Mar 05, 2010 by Marc Stenton in UK Economy News  |  Comments[0]