Advertising giant predicts stable year

WPP, headed by Sir Martin Sorrell, predicted gradually improving conditions in the media sector following an "encouraging return to stability".

The trends that were first seen in November continued into January as like-for-like revenues remained largely flat on a year earlier, according to the firm, which owns famous names such as Ogilvy & Mather and J Walter Thompson.

This came as a marked improvement on the sharp declines in like-for-like revenues last year - up to almost 11 per cent in the second quarter - which left 2009 pre-tax profits 11.3 per cent lower at 663m.

WPP has seen a significant leap in net new billings in the first two months of 2010, to 1.3bn compared with 3.1bn in 2009 as a whole.

The recent Winter Olympic Games in Vancouver provided a new year boost for advertisers, while WPP said other events on the industry calendar included the Asian Games in Guangzhou, the World Expo in Shanghai and the mid-term Congressional Elections in the United States.

WPP is forecasting comparable revenues to remain flat throughout 2010 in the UK and across the group as a whole, with a stronger second half offsetting a weaker first half.