WPP: shares fall sharply after new warning.
(CercleFinance.com) - WPP shares have crumbled 11.
2% to 1,415 pence in early trading on Wednesday after the world's biggest advertising company issued a warning for 2017.
The British-based giant has further reduced its full-year guidance, both in terms of like-for-like revenue and net sales, to between zero and 1% growth, from 2% in a previous forecast, which itself had been lowered from 3%, after the first quarter.
WPP cited pressure on client spending, particularly in the fast moving consumer goods and packaged goods sectors.
Over the first six months of the year, WPP reported net sales that were down 0.5% in organic terms, below the consensus of +0.7%.
Reported headline operating profit was up 14.7% at 882 million pounds, up 1.9% at constant currencies.
WPP also said it has acquired Design Bridge, an independent brand design agency whose clients include AkzoNobel, Diageo, Mondelez and Unilever.
With studios in Amsterdam, New York and Singapore, and around 400 employees, Design Bridge's revenues reached approximately 40 million pounds in 2016.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
2% to 1,415 pence in early trading on Wednesday after the world's biggest advertising company issued a warning for 2017.
The British-based giant has further reduced its full-year guidance, both in terms of like-for-like revenue and net sales, to between zero and 1% growth, from 2% in a previous forecast, which itself had been lowered from 3%, after the first quarter.
WPP cited pressure on client spending, particularly in the fast moving consumer goods and packaged goods sectors.
Over the first six months of the year, WPP reported net sales that were down 0.5% in organic terms, below the consensus of +0.7%.
Reported headline operating profit was up 14.7% at 882 million pounds, up 1.9% at constant currencies.
WPP also said it has acquired Design Bridge, an independent brand design agency whose clients include AkzoNobel, Diageo, Mondelez and Unilever.
With studios in Amsterdam, New York and Singapore, and around 400 employees, Design Bridge's revenues reached approximately 40 million pounds in 2016.
Copyright (c) 2017 CercleFinance.com. All rights reserved.