WPP 2Q Like-for-Like Net Sales Fell Less Than Expected
August 09 2019 - 2:32AM
Dow Jones News
By Adria Calatayud
WPP PLC (WPP.LN) said Friday that second-quarter like-for-like
net sales fell 1.4%, beating analysts' expectations, and backed its
full-year guidance.
The London-based advertising and marketing company said
like-for-like net sales--a closely-watched measurement of its
underlying operating performance--for the quarter improved after a
2.8% decline in the first quarter. Analysts expected a 3.0% fall in
the second quarter, according to a consensus forecast provided by
the company.
For the first half as a whole, like-for-like net sales fell 2.0%
on year, better than analysts' forecasts of a 2.9% decline, WPP
said.
Pretax profit for the first half fell 44% to 478.2 million
pounds ($580.9 million) from GBP846.5 million a year earlier. WPP
said profit was hit by a charge after reassessing a credit as well
as a year-earlier exceptional gain. Revenue rose 1.6% to GBP7.62
billion, the company said.
WPP reiterated its guidance for 2019 and continues to expect
like-for-like net sales to fall by 1.5% to 2.0%, and headline
operating margin to net sales to fall around 1.0 margin point on a
constant-currency basis.
The company's guidance confirmation came after French peer
Publicis Groupe SA (PUB.FR) cut its full-year organic sales
guidance last month, citing client pressures and the effects of a
restructuring.
WPP has struggled to deliver sales growth in recent years as
consumer-good giants reduced ad spending and Facebook and Google
entered a space once dominated by traditional agencies. The company
has taken steps to simplify its operations, including through the
sale of a 60% stake in its market-research unit Kantar last
month.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
August 09, 2019 02:17 ET (06:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
WPP (NYSE:WPP)
Historical Stock Chart
From Mar 2024 to Apr 2024
WPP (NYSE:WPP)
Historical Stock Chart
From Apr 2023 to Apr 2024