WPP 2009 organic revs at lower end of forecasts

Martin Sorrell's WPP, which has the likes of Unilever, Vodafone, HSBC and Ford as clients, said 2010 was likely to be flat, with a mildly weaker first half and a stronger second half.

The headline operating margin for 2009 was 11.7 percent, in line with forecasts, and that was tipped to increase to 12.7 percent for 2010 and to 13.2 percent for 2011.

French advertising group Publicis said in February it believed the worst of the economic downturn was over and said it aimed to return to sales growth this year and achieve stable margins.

Its forecast for flat margins however disappointed the market.

WPP's results came in towards the lower end of a range of forecasts. Analysts had been expecting like-for-like 2009 revenue down 7.7 percent and down 6.3 percent in the fourth quarter, compared to the actual 8.1 percent fall and 7 percent drop.

Its earnings before interest, tax, depreciation and amortisation were down 4 percent to 1.25 billion pounds, ahead of forecasts.

Sorrell told Reuters this week he had seen a "significant" change in trading in November and said the firm had now hit a stabilisation phase.

"Like-for-like revenues were almost the same in January 2010, against January 2009, an encouraging return to stability, a trend first indicated in November 2009," the company said.

"Although this return to stability seems widespread both geographically and functionally, there is no marked growth as yet, even against weak comparatives."