WPP Confirms 2007 Numbers; Sticks to It's Guns on Growth

03 March 2008

LONDON: As predicted last week by WARC News' legion of savvy seers, WPP Group obliged by delivering a solid set of full-year results for the year ended 31 December 2007, marginally bettering analysts' consensus expectations.

Adjusted pre-tax profit rose by 7% to £817 million ($1.62bn; €1.07bn), while gross revenue edged up 5% to £6.18 billion.

Commenting on the result, WPP observed it had seen "little or no impact" by the subprime mortgage and credit crunch crisis. Which is unsurprising given that the first cracks in the dam did not appear until the year's second half.

As to 2008: "[It] should be a better year than 2007, against the views of most economic forecasters, who predict a gloomy 2008," continued the WPP statement.

Despite its Panglossian outlook, WPP conceded it inevitable that the "real world" will eventually be affected by the looming economic issues.

"In our view this seems more likely to be in 2009, when a slowdown not a recession in the US will be hard to avoid," the company opined.

Data sourced from MediaGuardian.co.uk; additional content by WARC staff