The UK proprietor of the Ogilvy, Grey and GroupM bureaus, already rebuilding following a few years of tech-led turmoil from the advertising industry, is currently recovering from the sudden cancellation of spending by firms desperate to save cash in the outbreak.
While businesses in consumer packaged goods, pharmaceuticals and technology have significantly improved their spending, those in the luxury and automotive sectors are stabilising, while leisure and travel businesses stay weak.
Overall, underlying net sales dropped by 7.6% in the three months to the end of September, an advancement over the 15.1% fall in the past three weeks, and WPP said it remained on track to lower costs and hit its own downgraded forecast.
“Given the tightening of COVID restrictions around the world and uncertainty in the global economic outlook, we remain cautious about the pace of recovery,” CEO Mark Read said on Thursday.
WPP secured $1.6 billion of new company and said late on Wednesday it had extended its ties with Walgreens Boots Alliance, among the biggest pitches of this year.
Citi analysts said that the progress was more impressive because, unlike co-workers Publicis, Omnicom and IPG, WPP has a reduce exposure to the United States and has not profited from buying assets of late.
Underlying net sales were down by 5.1percent in North America, compared with a 10.2% fall in the next quarter, and down 6.5% in the UK, after a 23.3% dip in the past quarter.
Because of this, the company hopes to produce a full-year outcome within analyst forecasts of a fall between 8.5% and 10.7% in like-for-like net earnings, with a midpoint of down 9.6%. That contrasts with a variety midpoint given in August of downward 10.75%.
Analysts said the results were ahead of expectations, but traders said the shares fell to a month reduced, down 3.5%, on the careful outlook.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Kate Holton. Editing by Sarah Young and Mark Potter.
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