Earnings: WPP Revenue Falls Faster Than Expected; Recovery Still Due Next Year

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image London-listed advertising giant WPP on Tuesday reported worse than expected Q109 earnings, but CEO Sir Martin Sorrell is sticking to his prediction that H209 will be better than H1 — and that some recovery will take place in the advertising economy next year. “Reportable” revenues rose 35.6 percent year on year to £2.11 billion ($3.08 billion) — but in like-for-like terms total revenues were 5.8 down on Q108.

Below budget: Sorrell predicted a 2 percent revenue drop for 2009 as a whole. The CEO gave BBC Radio 4’s Today some stern realism this morning: “We’re not pushing back,” he insisted. “We said in 2010 there would be a recovery of sorts.” He admits it was a faster fall in Q1 than expected and that the company “under-forecasted what was going to happen.”

U.S. suffers, emerging nations resilient: Again, it was the wealthy western nations where WPP saw most of its decline: The US saw a 2.2 percent year on year drop in revenue in the quarter to a total of $1.12 billion; the UK was “less affected” while Spain, Italy and Denmark were “particularly affected”. Emerging economies in Latin America, Africa, the Middle East, and Eastern Europe including Russia and Poland experienced like-for-like growth. More details at our sister site paidContent:UK

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This guy is a complete blowhard and unbelievable after talking louder than anyone about how well WPP would do in 2009 despite the severe downturn. I personally heard him say this several times.

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