• by Joe Mandese , April 28, 2009

Citing "cuts in client spending in reaction to the global financial and economic crisis," WPP Group this morning reported a 5.8% decline in first quarter 2009 "like-for-like" revenues.

WPP, the world's largest advertising company, and the parent of the biggest buyer of media, GroupM, said it is revising its outlook, but that its 2009 revenues are likely to be "closer to recent industry forecasts of mid-single digit declines, reflecting continued pressure in most regions, but most significantly in the United States, Western Continental Europe and parts of Asia Pacific, like Japan and Australia. Given the first quarter overall performance and the preliminary quarter one forecast for the year, it will be difficult to maintain operating margins at the level achieved in 2008."

WPP, which had already been undergoing some belt-tightening to maintain margins in the face of reduced client spending, said that its global workforce has declined 2% since the first quarter of 2008, but did not break down which regions, or services have been most affected.

"By communications services sector, advertising and media investment management was least affected on a like-for-like basis, with public affairs and public relations and information, insight and consultancy a little more affected," the company disclosed. "Branding and identity, healthcare and specialist communications (including direct, internet and interactive) were most affected."

On a "reported" basis, which includes its acquisition of research giant Talyor Nelson Sofres, WPP's revenues declined 1.6%, buoyed by a 76.0% gain in revenues by its "Information, Insight & Consultancy" unit, which includes TNS. Revenues for its "Advertising & Media Investment Management" operations, which includes media services agencies such as Mindshare, MediaCom, and Mediaedge:cia; as well as agencies such as JWT, Ogilvy and Y&R, however, fell 15.4% to $1.16 billion.