WPP the world’s biggest advertising company battling a slowdown in client spending, lowered expectations for full-year organic net sales and profit margin on Tuesday, two months after an earlier downgrade sent shockwaves through the industry.
Led by the high-profile British businessman Martin Sorrell, WPP said it now expected like-for-like net sales growth to come in flat, compared with a previous forecast range of 0 to 1 percent.
It said the headline net sales operating margin was now expected to be flat, compared with a previous forecast of a 0.3 margin point improvement.
“Geographically, like-for-like revenue growth in the third quarter was stronger in the United Kingdom, with all other regions, particularly North America, slipping back,” it said.
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WPP said its main trading measurement, like-for-like net sales, fell by 1.1 percent in the third quarter, an improvement on the 1.7 percent drop recorded in the second-quarter and a market expectation of a 1.4 percent fall.
Net sales fell by 4.9 percent in North America.
The British group, like its peers Publicis and Interpublic, has been hit by a fall in spending from consumer packaged goods groups, and from fierce competition in the market for online advertising.
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