The news was as gloomy as predicted by analysts and it pushed WPP's share price sharply down this morning. Its shares were down 4.66% or 21.5p to 478.5p.
Turnover at the group, owner of ad agencies such as J Walter Thompson and Ogilvy & Mather, was down by 2% to 拢8.78bn for the six months ended June 30, 2002.
WPP blamed the current economic climate in the US for the poor results. In North America, which provides 44.7% of WPP's total revenue, reported revenue was down by 6.3%. However, the UK saw growth of 3.9%, while continental Europe proved the most buoyant, rising by 7.6%.
The biggest revenue decline by sector was reported at WPP's public relations businesses, which include Burson-Marsteller and Hill & Knowlton. Revenue was down by 11.2% for the first half of the year, compared with the same period last year.
Combined revenue at WPP's advertising and media operations Ogilvy & Mather, J Walter Thompson, Young & Rubicam Advertising, Red Cell, MindShare and Mediaedge:cia fell by 2%.
WPP's chief executive Sir Martin Sorrell now expects a "double-dip" recession, after earlier predicting a saucer- or bath-shaped model. In a statement, the group said: "Stock market declines in the past few months have heightened concerns about corporate profitability and consumer confidence and have raised the possibility of an economic 'double-dip'."
It went on to say: "It seems unlikely that significantly improved performance will occur in 2002 and that any recovery will have to await 2003 or, perhaps, even more likely 2004, when the US presidential election and the Athens Olympics will begin to have a positive effect, at least on media markets."
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