WPP Expects Slower Growth in 2017
03 March 2017 - 6:40PM
Dow Jones News
By Nick Kostov
WPP PLC (WPP.LN) said revenue growth slowed in the second half
of last year as clients spent less in the U.S. and U.K.
The world's largest advertising company also forecast slower
growth for 2017, reflecting fewer new business wins in recent
months and what it called a "tepid" macroeconomic environment.
Like-for-like net sales--a measure used to judge the company's
underlying performance--rose 3.1% last year, in line with analysts'
expectations but reflecting a drop off in the second half. WPP said
that particularly strong sales growth in the same period a year
earlier made the latest figures look weaker.
The U.K.-based company, whose agencies include Mindshare and
JWT, said on Friday that net profit rose 21% last year to 1.4
billion pounds ($1.72 billion). Revenue rose 18% to GBP14.39
billion.
Run by Chief Executive Martin Sorrell, WPP has expanded its
digital operations and made acquisitions to outpace rivals like
Omnicom Group Inc. and Publicis Groupe SA as spending for ads in
traditional media has slowed in recent years.
The group had a relatively slow start to the year, with January
like-for-like net sales up 1.2% from the same period last year. WPP
said it is budgeting for around 2% growth in both revenue and net
sales for 2017.
The group raised its dividend to 56.6 pence from 44.69
pence.
-Write to Nick Kostov at nick.kostov@wsj.com
(END) Dow Jones Newswires
March 03, 2017 02:25 ET (07:25 GMT)
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