WPP’s like-for-like net revenue is expected to fall by between 4.2-4.5% over the first half, to around £5.0bn. Performance worsened over the second quarter due to “intensifying” macro pressures and one-off factors which weighed on net new business.
Due to the net revenue declines and severance action at WPP Media, first-half underlying operating profits are now expected to be in the £400-425mn range. This implies a margin of 8.0-8.5%, down 2.8-3.3 percentage points.
The weak first-half trading is expected to continue into the second half. As a result, full-year net revenue guidance has been downgraded from a decline of between 0-2% to between 3-5%.
Full-year underlying operating profit margin guidance has also been downgraded from flat, to a decline of between 0.50-1.75 percentage points.
The shares fell 13.7% in early trading.
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WPP key facts
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