WPP Group, the world's second-largest advertising firm, predicted 2009 would be very tough after reporting third-quarter revenue growth broadly in line with expectations. WPP also said its headline operating margin was flat in the first nine months and it would now not be easy to attain its margin target for 2008 of 15.5 percent. The news sent its shares down 3 percent at the open before they recovered to be 9 percent higher at 1230 GMT after Chief Executive Martin Sorrell told analysts he did not agree with some of the lowest analyst forecasts in the market. The share price rise recovered some of the falls the group had endured in recent weeks. The outlook warning, which included the acknowledgment that the Olympic Games did not produce the “Beijing Bounce” that was expected, follows similar dire predictions from other advertising groups such as Omnicom and Publicis. “There is no doubt that the disintegration in the financial markets ... has had and will continue to have, a significant negative effect on consumer and corporate confidence,” the group said. “As a result, 2009 will be a very tough year. “The third quarter revised forecasts submitted by our operating companies, which include revenue forecasts for the fourth quarter, appear cautious,” the firm said. But Sorrell told Reuters he did not agree with some of the analyst forecasts for 2009 organic revenue growth at down 5 percent. “If you ask me to say what I think the budgets will look like next year, I think they will be positive in terms of revenue growth,” he said in an interview. “Which is counter to what some analysts are saying.” In an effort to better protect itself during a downturn, WPP bid for the more resilient British market research group Taylor Nelson Sofres and on Wednesday declared the offer as wholly unconditional. WPP, whose agencies include JWT and Ogilvy & Mather, posted like-for-like revenue growth of 3 percent, compared with 4.3 percent in the first half, and reported revenue growth of 16.2 percent to 1.72 billion pounds ($2.76 billion). Analysts had been expecting like-for-like revenue growth of 3.3 percent.
