WPP lifts its full year sales outlook

WPP has lifted its full-year sales outlook as newly appointed boss Mark Read unveiled the advertising giant's first quarter of like-for-like revenue growth for more than a year.
WPP has lifted its full-year sales outlook.  Photo: Chris Radburn/PA WireWPP has lifted its full-year sales outlook.  Photo: Chris Radburn/PA Wire
WPP has lifted its full-year sales outlook. Photo: Chris Radburn/PA Wire

Just a day after confirming Mr Read as new chief executive to succeed Sir Martin Sorrell, WPP said like-for-like sales grew by 2.4% in the three months to June 30 - its first quarterly growth since the start of 2017.

WPP now expects growth in full-year net sales to come in at a similar level to the first half, compared with its previous prediction of no growth.

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Mr Read said he will update on his new plans for the group by the end of the year, with a strategy review under way to combat under-performing areas of the business.

Mr Read said: “The second quarter of 2018 was WPP’s first quarter of like-for-like growth since first quarter of 2017, and the company has performed strongly in terms of winning and retaining business over the period.”

He added: “As chief executive, my focus will be on invigorating our company and returning the business to stronger, sustainable growth.

“Our review of strategy is under way, addressing our structure, our under-performing operations, particularly in the United States, and how we position the company for the future.

“We will provide an update by the year-end.”

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Despite the more cheery sales news, WPP reported a 7.4% fall in underlying pre-tax profits to £735 million for the first half of the year, down 2.5% with currency effects stripped out.

On a statutory basis, pre-tax profits lifted 8.6% to £846 million, but this was thanks to one-off gains largely from the sale of its investment in Buenos Aires-based software business Globant.

Like-for-like revenues overall in the first half lifted 1.6% and the group said trading in July saw comparable sales rise 2.1%.