logo
Plus   Neg
Share
Email

WPP Q3 Revenue Down; Sees FY Margin, LFL Revenue Growth Within Market Range

Advertising major WPP plc (WPP.L,WPPGY) reported Thursday that its third-quarter revenue declined 9.8 percent from last year to 2.97 billion pounds. On a like-for-like basis, revenues declined 5.5 percent.

Revenue less pass-through costs was 2.40 billion pounds, down 11.9 percent on a reported basis and down 7.6 percent on LFL basis.

Third-quarter LFL revenue less pass-through costs in the top five markets was US down 5.5 percent, UK down 6.5 percent, Germany down 1.8 percent; Greater China down 16.7 percent; and India down 16.3 percent.

Further, the company said it is on track to be towards upper end of 700 million pounds to 800 million pounds cost reduction target.

Looking ahead, the company expects fiscal 2020 LFL revenue less pass-through costs growth to be within the current range of analysts' forecasts of negative 8.5 percent to negative 10.7 percent. Further, headline operating margin is expected to be within the range of latest analysts' expectations of 11.4 percent to 12.5 percent.

The previous ranges, given at the time of first half results, were LFL revenue less pass-through costs growth of negative 10.0 percent to negative 11.5 percent and headline operating margin of 10.4 percent to 12.5 percent.

Mark Read, Chief Executive Officer of WPP, said, "Given the tightening of COVID restrictions around the world and uncertainty in the global economic outlook, we remain cautious about the pace of recovery."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
General Electric Co. filed a lawsuit against Siemens Energy AG, accusing the German power distribution company of stealing trade secrets for gas turbines. Siemens Energy allegedly used the information to get at least nine contracts to supply gas turbines to public utilities, and also covered up improper business gains. Following a court ruling, the U.S. Food and Drug Administration postponed the effective date for tobacco manufacturing companies to display new health warnings on cigarette packets and in advertisements, by additional 90 days. The warnings with color images is to promote greater public understanding of the negative health consequences of smoking. JPMorgan Chase & Co (JPM) reported strong results in the fourth quarter of 2020, with net profit up 42% largely driven by credit reserve releases of $2.9 billion. The Group said it ended the year with a CET1 ratio of 13.1% and capital above $200 billion, providing with meaningful capacity to further...
Follow RTT