WPP Revenue Growth Slows After Client Spending Declines
August 23 2017 - 2:52AM
Dow Jones News
By Nick Kostov
WPP PLC said its revenue growth slowed in the second quarter as
clients spent less in the U.S. and Western Europe.
The world's largest advertising company lowered its forecast for
growth for 2017, citing major slowdowns in industries that it had
long relied upon for growth, such as consumers-goods and retail. It
now expects growth of up to only 1% this year.
WPP said its like-for-like net sales--a measure used to judge
the company's underlying performance--declined 0.5% in the second
quarter compared with a year earlier, below the expectations of
analysts. For July, like-for-like net sales declined 2.6%.
The U.K.-based company, whose agencies include Mindshare and
JWT, said Wednesday that reported profit before interest and tax
rose 15% to £882 million in the first half. Reported revenue rose
13% to GBP7.4 billion for the period, lifted by favorable currency
translation to the Brexit-weakened pound.
WPP's share price has dropped this year, with many of its
largest clients struggling to boost growth amid a tepid global
economy, tough competition and fast-shifting consumer tastes.
WPP raised its dividend to GBP22.7 pence from GBP19.55 pence in
the first half.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
August 23, 2017 02:37 ET (06:37 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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