Market anticipates WPP profits to leap

LONDON - Shares in WPP Group were trading up this morning, as the market anticipated a 25% jump in profits for the world's second-largest advertising company.

This morning, WPP shares were up by 0.85% at 711p. They closed on Friday at 705p.



Analysts are predicting that WPP's pre-tax profits for the year will jump to between £470m and £489m, from last year's figure of £381m.



However, this is as a result of the group's acquisition of Young & Rubicam, which also owns Burson-Marsteller and The Mediaedge, and not because it has managed to buck the advertising recession.



Organic growth is reckoned to have fallen by 2%-3%, with the last three months of the year thought to have been particularly hard. As far back as October, WPP warned that full-year revenues could be down by 2%. It also said that the impact of the September 11 terrorist attacks on the last three weeks of September alone cost WPP at least $30m (£21m).



Those looking for some upbeat comments from chairman and CEO Sir Martin Sorrell are likely to be disappointed. He has already stated at the World Economic Forum, earlier this month, that he does not anticipate advertising spend to increase this year.



WPP's results are due out on Wednesday, a day after its New York-listed rival Omnicom publishes its full-year figures.



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