It seems like the challenges faced by tech firms have now reached the advertising industry — at least in the US — if WPP’s actions this morning are anything to go by. The company lowered its full-year guidance as rising interest rates and elevated inflation dampen ad spending and delay projects.
(Bloomberg) — It seems like the challenges faced by tech firms have now reached the advertising industry — at least in the US — if WPP’s actions this morning are anything to go by. The company lowered its full-year guidance as rising interest rates and elevated inflation dampen ad spending and delay projects.
Here’s the key business news from London this morning:
In The City
Telecom Plus Plc: The supplier of bundled household utility services said it expects to deliver “comfortable” double-digit annual percentage customer growth this year given the significant reduction in energy price volatility in recent months.
- The company expects a “broadly corresponding” increase in adjusted profit before tax as the strong trading performance continues
WPP Plc: The advertising group cut its full-year outlook as second-quarter results missed analysts’ expectations due to a weaker performance in the US and a slower-than-expected return to growth in China.
- It now sees revenue less pass-through costs rising 1.5% to 3% in 2023, down from previous guidance of 3% to 5%, while its headline operating profit margin is seen at around 15%
De La Rue Plc: The printer of King Charles III banknotes named non-executive director Dean Moore as interim Chief Financial Officer with immediate effect.
- Moore replaces Charles Andrews, who will continue for a short period of time to ensure a smooth handover of responsibilities
Liontrust Asset Management Plc: The company extended its offer period to buy Swiss fund house GAM Holding AG for a third time in a sign the deal aimed at building a $66 billion global asset manager is struggling to go through.
- The new deadline will now be Aug. 23, with shareholders in GAM set to vote on Aug. 18 on the takeover offer by the London-based firm
In Westminster
The selection of Conservative candidates for the next general election, which has to be called before the end of January 2025, has only just begun, but the party has already netted two big beasts.
Meanwhile, here’s a closer look at how the Tories have lost ground on law and order to Labour — and how crime could sway the next general election.
Finally, London Mayor Sadiq Khan said he’ll boost payments for scrapping old cars and extend the program to all residents of the city, part of an effort to reduce pollution and fossil-fuel emissions.
In Case You Missed It
Vodafone Group Plc’s biggest shareholder is pushing ahead with an ambitious global expansion strategy, undeterred by a slump in the British carrier’s share price that’s wiped out a chunk of its most high-profile investment.
Abu Dhabi-based Emirates Telecommunications Group this week said it will pay €2.15 billion for a controlling stake in some of PPF Telecom Group’s assets in Eastern Europe. The deal marks the Gulf firm’s second large foray into Europe since May last year, when it splashed out $4.4 billion for just under 10% of Vodafone.
Chelsea FC has approached investors about raising as much as $500 million for the London-based club, people familiar with the matter told Bloomberg. Clearlake Capital, Chelsea’s majority owner, along with American investor Todd Boehly, spent over £600 million on new players last season, and have recently taken the first step in their multi-club strategy, buying the French team RC Strasbourg.
Looking Ahead
Next week’s batch of earnings includes the likes of Glencore Plc, food delivery service Deliveroo Plc, gambling companies Flutter Entertainment Plc and Entain Plc, and money managers Abrdn Plc and Quilter Plc.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
–With assistance from Leonard Kehnscherper.
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