WPP boss Sir Martin Sorrell yesterday admitted “everyone should be concerned” about the current state of the Chinese economy – but said he remained an “unabashed bull” over the long term.
Speaking to City A.M., Sorrell said that although Asia Pacific is the company’s third largest market, WPP would not be changing its strategy amid fears of an economic slowdown.
He added it took decades for a financial power to develop and stabilise. “It took America 100 years to become the world’s largest economy,” he said.
Sorrell’s upbeat remarks came as WPP reported a 6.4 per cent increase in revenue, as well as five per cent rise in billings worldwide.
Due to slow GDP growth, alongside other factors, the company said there remained a focus on “cutting costs to reach profit targets, rather than revenue growth” for many advertisers, which is inhibiting spending.
In spite of this, Sorrell, who earned £43m in 2014, was confident the company’s current strategy will allow it to increase profits.
He said the company predicts the second half of 2015 to be less challenging.
WPP has seen notable success in its strongholds of North America, Western Europe and the UK. However, uncertain economies elsewhere produced a disappointing performance in the second quarter.