Morgan Stanley : WPP Group plc is screwed
March 13, 2009
Morgan Stanley is on record for stating that WPP group plc will lose 12% of it’s revenue over the next 18 months. A 7% hit in revenue for 2009 and another 5% per cent crash in 2010, implying a deep and prolonged global recession. Nearly 1% decline per month over the next 2 years.
This will have profound repercussions throughout the company, as clearly they didn’t fire 12% of their staff, they didn’t cut back 12% in expenses and they didn’t invest properly in digital media .. in fact they spent money on the wrong assets leaving WPP group plc with a gaping hole the size of Texas for the skillset needed during a recession / depression.
They are firing people right and left now and refusing to go into higher ROI assets that could be key to landing new accounts. In other words they are really heading down the wrong path.
This is going to be a really ugly 2 years, really ugly.
WPP’s SEO division
Comments
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http://www.angelsdontcry.com/ Andrew
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http://www.angelsdontcry.com Andrew
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