WPP reports further revenue slide
WPP, owner of Mindshare, Ogilvy & Mather Worldwide and JWT, says revenues fell 6.7% in the first four months of the year.
The marketing services group says the revenue slide, which excludes the impact of October’s acquisition of Taylor Nelson Sofres and currency fluctuations, was caused by “economic pressure” in the US and UK.
In a trading update at its Annual General Meeting in Dublin today (June 2), WPP says reported revenues increased 33.7% while sales at constant currencies increased 10.3%.
The news comes just over a month after the Sir Martin Sorrell led company reported revenues fell almost 6% in the first quarter of the year.
WPP adds its information, insight and consultancy divisions are the most effected by the global recession while the communications, advertising and media investment are the least.
The group says it cut 4,300 jobs, or 3.7% of its workforce in the first four months with over half leaving on a “voluntary basis”.
Reports last month said the company was looking to cut about 7,100 roles this year. WPP says the short-term focus will continue to be “balancing staff costs and headcount”.
According to recent reports, shareholders were expected to approve a £60 million bonus scheme for Sir Martin at today’s AGM, although about a quarter of investors are expected to reject the plan.
