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."

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