ACQUISITIONS DRIVE WPP REVENUE

Predicts Flat Growth for 2002

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NEW YORK (AdAge.com) -- Aided by acquisitions, WPP Group announced on Wednesday revenue increased 35% for 2001. However, excluding all acquisitions, revenue dropped 3% in year-over-year comparisons.

The London-based company reported revenue, or the income derived from commissions on media placements and fees for advertising services, of $5.79 billion for the year ended Dec. 31, up from $4.29 billion the year earlier.

Advertising, media

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Acquisitions Help Boost Growth
and investment management, which comprises the largest percent of revenue (46%) of all WPP sectors, grew 31% in 2001, primarily as a result of acquisitions.

Revenue, on a pro-forma combined basis, at WPP's major agencies -- Ogilvy & Mather Worldwide, J. Walter Thompson, Y&R Advertising, Red Cell and Mediaedge: CIA -- were flat.

WPP's earnings were up 11% to $390 million, from $352 million one year ago. But standard earnings per ADR (American Depositary Receipt) dropped 20.5%, year over year, from $2.15 per ADR to $1.71 in 2001.

WPP said that 2001 had been a "brutal year" and added that early indications for 2002 are that the "worldwide growth of advertising and marketing services expenditure will be flat."

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