WPP Backs 2019 Guidance After Fall in Like-for-Like Net Sales
April 26 2019 - 02:32AM
Dow Jones News
By Adria Calatayud
WPP PLC (WPP.LN) on Friday backed its guidance for 2019 after
posting a 2.8% decline in like-for-like net sales for the first
quarter, hit by last year's client losses in the U.S.
The company's like-for-like net sales--a closely watched
indicator of its underlying performance--dropped 8.5% in North
America in the first quarter, WPP said. Comparable net sales fell
0.9% and 0.3% in the U.K. and west continental Europe,
respectively, and grew 2% in Asia Pacific, Latin America, Africa
and the Middle East and Central and Eastern Europe, the
London-based company said.
In the first quarter, WPP generated revenue of 3.59 billion
pounds ($4.63 billion), up 0.9% from GBP3.56 billion in the
year-earlier period, it said.
The world's largest advertising company said it still expects
like-for-like net sales for 2019 as a whole to fall between 1.5%
and 2% with stronger headwinds in the first half due to client
losses in 2018.
WPP also reiterated guidance for a decline in this year's
headline operating margin to net sales of 1.0 percentage point on a
constant-currency basis compared with 2018.
"Although we face a challenging year, especially in the first
half, I am encouraged by how well our people, agencies and clients
are responding to our new strategic direction," Chief Executive
Mark Read said.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
April 26, 2019 02:17 ET (06:17 GMT)
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