WPP cuts forecasts as advertising spending dwindles

 
Alys Key
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WPP is a bellwether for the advertising industry (Source: Getty)

Advertising agency WPP cut forecasts this morning, as revenue declined again. The firm said full-year results will be flat on last year, as it revealed a drop in sales for the third quarter.

The figures

Revenue in constant currency dropped 0.4 per cent in the third quarter. However currency fluctuations meant reported revenue grew 1.1 per cent to £3.6bn.

For the first nine months of the year, constant currency revenue grew by 1.1 per cent.

The company said it was reviewing forecasts but now expected both like-for-like revenue and net sales would be flat.

Why it's interesting

WPP's share price has plummeted this year from from 1,900p in March to just over 1,280p today, after a succession of gloomy results.

The firm has blamed a culture of low advertising spending among its clients for the slow growth in its business.

Read more: WPP shares tumble on gloomy outlook: This is how the City reacted

What WPP said

Chief executive Sir Martin Sorrell told the BBC this morning that he did not blame the poor advertising market outlook on big players such as Google and Facebook, but that he saw these as opportunities.

Read more: WPP targeted by short-selling hedge fund

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