WPP suffers 8.7% revenue drop; shares rise

One of the largest communications services group ' WPP ' has experienced a drop in its organic revenue by 8.7%. WPP said that although the revenue has dropped but the rising economic conditions are indications of a better tomorrow. Its overall revenue, however, has seen a rise of 16.7% and touches £2 billion.

Despite the fall in organic revenue, WPP shares registered a healthy rise in the market and went up by 4.4% to close at 569 pence. The company issued a trading statement saying "There is little doubt that consumer and corporate confidence has recovered somewhat from the panic levels of the fourth quarter of 2008 and first quarter of 2009.

"Confidence, however, remains fragile amongst consumers, because of the shadow of high unemployment levels and amongst corporates, because Armageddon and Apocalypse now were barely avoided in September 2008."

The company also revealed that its operations in France, Germany and US have recovered from recession completely. WPP saw its business doing well in areas of Western Europe and Asia Pacific. The media giant has added business amounting to £730 million in the third quarter. Out of this, £80 million is being contributed by Lloyds alone, the media account for which was won by Mediaegde:cia.

WPP was established in 1985 and currently operates out of 2000 offices spread across 107 countries. The company owns Ogilvy Advertising and Mediaegde:cia.