British advertiser WPP reports rising revenues
Advertising giant WPP on Tuesday said revenues rallied 2.0 percent in the first five months of the year, driven by Asia and the United States.
In a trading update at its annual general meeting in Dublin, WPP also repeated its forecast that revenues would grow by 2.0 percent in 2010.
WPP, which is the world's biggest advertising group by revenues, said it will be boosted by major events like the World Cup and the US mid-term elections, but sounded caution over the eurozone crisis and US economic growth.
"For the remainder of 2010, the focus will continue to be on ensuring that the benefits of stabilisation and now growth in revenues, and the significant cost actions taken during 2009, continue to be reflected in operating profitability," WPP said in the statement.
It added: "At this stage we expect this trend (of rising revenues) to continue, as the Winter Olympics in Vancouver, Asian Games in Guangzhou, the FIFA World Cup in South Africa, the IPL cricket league and Commonwealth Games, both in India, The World Expo in Shanghai and the US mid-term Congressional elections, have a positive effect on the group's revenue growth."
However, the group said it was cautious because of eurozone sovereign debt concerns, austerity measures in Europe and mounting concerns about the US economy.
"We have to continue to be cautious -- there are fears of eurozone contagion from Greece, Portugal, Spain and Ireland to other parts of Europe; fears of the impact of the UK Government's new austerity programmes; fears of similar austerity programmes in France and Italy; and fears of the withdrawal of fiscal stimulus in Germany," WPP added.
"Perhaps most important of all, fears for US growth later this year... together with the postponement of any withdrawal of the US fiscal stimulus and its impact on the deficit and as taxes rise on corporate profits."
© 2010 AFP