WPP group plc ad revenue tanks 6%
April 28, 2009
We are having a good time to see how the media is spinning the WPP group plc financial statement. An article on Yahoo says “Revenue Jumped 36%” as the headline, however forgetting to mention the crushing debt that was needed to purchase the firms to increase revenue… sort of like taking a loan with a 6% intrest rate of $100 dollars to get an additional $3 dollars a year in revenue…
there is no way about it, their like-to-like revenue has crashed 6% and the debt payments most likely will increase pressure on the company to continue “cost cutting” — IE: layoffs.
Don’t believe us, here is their complete revenue sheet.
Comments
View Comments to “WPP group plc ad revenue tanks 6%”
Got something to say?
Recognized by Advertising Age Magazine as top Power 150 news outlet for Advertising and Marketing.
Recognized and listed in Google News. Don't stress, we're Satire
Ad Agency Advertising
I say Martin is on his last year with WPP! He will experience the same seperation as imposed upon the Saatchi brothers.
Just read the revenue report – no mention of Dell or Enfatico. Interesting to see it’s not germane to their revenue stream.
Isn’t this just another type of Ponzi scheme?
The company borrows money to ‘buy revenue’ (high interest-bearing to, non-accretive deals) hoping that the next quarter’s revenue story (“up 35.9%”) will keep attracting new investors and lenders.
The problem is that WPP has no real understanding of how to make their under-performing core assets (Ogilvy, JWT, Y&R, etc) perform. The only growth strategy they know is through financial engineering.
One good thing about a recession is that it increases visibility into the true value of highly pumped investment stories.
I smell an implosion. Anyone want to start a count-down clock? 12 months? 18?
That’s exactly what it is Isau Hispansaroff! I built a countdown clock for Enfatico, http://countdown.tribbleagency.com … and I might be building on for WPP itself at this rate.
[...] company revenue crashed 6% in 90 days, leaving little new business coming in, and huge amounts of business leaving the door, such as Dell [...]