WPP, THE world’s largest advertising group by revenue, posted first-half like-for-like sales at the low end of forecasts, but said it expected a better second-half due to job cuts and easier comparatives.
WPP shares, up 10 per cent in the past week, fell 3.2 per cent on news that first-half like-for-like sales fell 8.3 per cent, compared with 5.8 per cent in its first quarter and a forecast of 7.8 per cent.
Chief executive Martin Sorrell said trading had improved in July after the fall in sales of over 10 per cent in the second quarter.
Global advertising sector revenues have been battered this year as clients have cut spending during the recession.
WPP’s first-half headline earnings before interest, depreciation and amortisation fell 14.3 per cent to £455.7 million (€519.5 million), on revenues which were up 28 per cent to £4.3 billion, in line with forecasts.
The group expects improved second-half profitability due to improving comparatives and after cutting jobs by almost 6 per cent on the year. – (Reuters)
