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)

Copyright (c) 2019 Dow Jones & Company, Inc.
WPP (NYSE:WPP)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more WPP Charts.
WPP (NYSE:WPP)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more WPP Charts.