WPP warns of further gloom

WPP Group, the world’s biggest advertising group, warned of further advertising gloom yesterday, predicting no recovery until next year at the earliest as it posted an 8% slide in underlying revenues.

Hit by the one of the worst advertising downturns on record, it abandoned its operating margin target of 15% this year and said last year’s level of 14% would also be difficult to achieve.

“It seems unlikely that significantly improved performance will occur in 2002 and that any recovery will have to await 2003 or, perhaps, even more likely 2004,” WPP said.