WPP Plc cut its revenue guidance for the full year citing lower sales in the US from technology clients and delays in spending on technology projects.
(Bloomberg) — WPP Plc cut its revenue guidance for the full year citing lower sales in the US from technology clients and delays in spending on technology projects.
Revenue growth excluding pass-through costs will be 1.5% to 3.0% for the full year, the UK-based advertising group said in a statement on Friday. It had previously guided for 3% to 5%.
Revenue excluding pass-through costs for the first half was £5.8 billion ($7.4 billion), a 2% increase from a year earlier on a like-for-like basis, WPP said. Analysts surveyed by Bloomberg were expecting sales to grow to 3%.
Advertising results have been a mixed bag so far this year as rising interest rates and high inflation blunt advertising spending and delay projects. US-based peer Omnicom Group Inc.’s shares slumped the most in over a year in July when the advertising firm missed expectations for second-quarter revenue and organic revenue growth, citing “economic uncertainty.” Interpublic also cut its forecast for the year in July, knocking shares in WPP and Publicis. However, Publicis’s results reassured the market somewhat after the French group beat estimates for 2023 and beat expectations.
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