WPP profit slumps 40% on lower sales, writedowns | 1 March 2019

WPP’s billings for 2018 in millions

WPP’s billings for 2018 in millions

Rival Publicis alarmed investors with a weak showing last month and WPP said its underlying net sales would fall by as much as 2% in 2019 after dropping 0.4% in 2018.

WPP, which was rocked by the sudden departure a year ago of founder and chief executive Sir Martin Sorrell, plans to shed under-performing parts of the business and make itself leaner. Under his plan he hopes to bring WPP back in line with peers by the end of 2021.

"Through 36 disposals since April 2018, we have strengthened our balance sheet and streamlined our business, raising £849mln of cash proceeds in 2018".

For 2019, the company expects like-for-like revenue less pass-through costs to fall by 1.5% to 2%.

But, as he said at the strategic update in December, the client losses will make 2019 challenging, particularly in the first half.

WPP faced a tumultuous year in 2018, losing its founder Sir Martin Sorrell, 40% of its market value and several big clients as the advertising industry struggled with competition from Facebook and Google. Analysts had on average expected a decline of 0.6% for the year and 1.5% for the fourth quarter.

"We are at the beginning of a three-year turnaround plan, but WPP's new positioning. with stronger, more integrated, more tech-enabled agencies is already proving effective", chief executive Mark Read said in the statement.

House panel sets deadline for WH on security clearances info
Cummings then warned that the letter will be the final time he requests voluntary cooperation with the investigation. Career security officials had recommended against granting a clearance to Kushner, the president's son-in-law.

FTSE 100 advertising firm WPP (WPP) tops the FTSE 100 leaderboard, up 7.8% to 889.8p, as both its 2018 numbers and 2019 guidance are a little bit better than feared.

He said the business is performing strongly in Western Europe, Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, and "we are addressing our performance in the United States", where there ha been "important wins" such as Volkswagen and "significant investments" were being made in talent in what is the group's largest market. "With the shares at 9x adjusted PE, we see considerable scope for a re-rating".

George Salmon, equity analyst at Hargreaves Lansdown, said: "Stronger momentum in Europe and emerging markets provide some welcome relief after a torrid 2018".

The group's total dividend to investors for the year is 60p a share, which is the same as a year earlier.

"The light at the end of the tunnel is getting nearer, but with 2019 set to be impacted by continued weakness in the key USA market, revenue and margin trends could well get worse before they get better", he added.

In late morning trading, shares gained 7.9% to 891p.

Recommended News

  • David Beckham: LA Galaxy unveil statue before MLS season opener

    David Beckham: LA Galaxy unveil statue before MLS season opener

    The LA Galaxy unveiled a statue of David Beckham ahead of the club's 2019 Major League Soccer season opener on Saturday night. In addition to the field, a mural featuring Beckham's time as a member of the LA Galaxy accompanied the project.
    Deepika Padukone returns from Greece, rocks the airport look as always

    Deepika Padukone returns from Greece, rocks the airport look as always

    I had had many conversations with myself that she just may not be interested in doing the kind of film that I was taking to her. Once, In an interview with Filmfare, Ranveer opened up on when he thought Deepika is the "one" for him.
    Nick Kyrgios defeats Alexander Zverev in straight sets in Mexican Open final

    Nick Kyrgios defeats Alexander Zverev in straight sets in Mexican Open final

    In a spicy encounter, Zverev let a third break point chance slide by as Kyrgios pulled out some sublime touches to fend him off. Although Zverev held serve at 3-5 down to make the Australian serve out for the Championship, Kyrgios was up to the task.
  • New Zealand Crush Bangladesh By An Innings After Trent Boult Bags Five

    New Zealand Crush Bangladesh By An Innings After Trent Boult Bags Five

    Kane Williamson scored his second test century as the Black Caps demoralised Bangladesh with a dominant display of batting. The Black Caps also bettered their previous highest test total of 690 set against Pakistan in Sharjah in November, 2014.
    Lakers to re-evaluate Lonzo Ball’s injury status in a week

    Lakers to re-evaluate Lonzo Ball’s injury status in a week

    Not only is he a gifted playmaker, but his aggressiveness on the defensive end has been his main contribution to the Lakers. With Rajon Rondo and LeBron James finally healthy, the Lakers can start walking the walk instead of talking the talk.
    Import-Export, Industry Chain Structure and Development Opportunities

    Import-Export, Industry Chain Structure and Development Opportunities

    Get Reasonable Discount on This Premium Report @ www.advancemarketanalytics.com/request-discount/47608-glo . Important application areas of Augmented Reality are also assessed on the basis of their performance.
  • Miley Cyrus reveals her first kiss was with a girl

    Miley Cyrus reveals her first kiss was with a girl

    It very much could be the real reason, but we're laughing super nervously at it. "I wanted to go undercover with the ladies. I'm not a sob story of someone made me or cracked the whip, I wanted it".
    Furious Comeback Falls Short in Lakers' Loss to Phoenix

    Furious Comeback Falls Short in Lakers' Loss to Phoenix

    Just prior to the end of this game, the Lakers sat four games back of the eighth and final playoff spot in the Western Conference. The Suns (13-51) had the game in control for most of the night, inflating their lead to 19 points with just over 10 minutes left.
    Tourist posing for photo on iceberg gets swept out to sea

    Tourist posing for photo on iceberg gets swept out to sea

    Streng said a second large wave came and "made the throne kind of rock, and I could tell that I was slipping off". A woman on holiday in Iceland had to be rescued after the ice she was sitting on began to drift away.
  • Revolut finance chief quits amid controversies

    Revolut finance chief quits amid controversies

    Many users reported that they were unable to make withdrawals from the app's Vault feature which allow peoples to deposit savings into a virtual vault.
    Donnie Nietes vacates WBO crown

    Donnie Nietes vacates WBO crown

    Nietes (42-1-5, 23KOs) and Palicte fought to a 12-round draw in their vacant title fight last September in Inglewood, California. Instead of the news of who won the purse bid, the WBO revealed that its 115-pound world title is now vacant.
    Plastic Waste to Oil Market Expected To Show Steady Growth

    Plastic Waste to Oil Market Expected To Show Steady Growth

    Covering Coil Coatings Market country level analysis of the industry for segment by application , product type and sub-segments. The global Agricultural Waste Water Treatment (WWT) market is one of the booming markets with well-established zone worldwide.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.