Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Uber and HSBC wins help trading improve at ad group WPP

10/29/2020 | 05:23am EST
Branding signage is seen for WPP, the world's biggest advertising and marketing company, at their offices in London

LONDON (Reuters) - Client wins with Uber, Alibaba and HSBC helped the world's biggest advertising company WPP deliver an improvement in third-quarter underlying trading, particularly in Britain and the United States.

The British owner of the Ogilvy, Grey and GroupM agencies, already rebuilding after several years of tech-led turmoil in the ad industry, is now recovering from the abrupt cancellation of spending by companies desperate to save cash in the pandemic.

While businesses in consumer packaged goods, pharmaceuticals and technology have increased their spending, those in the automotive and luxury sectors are stabilising, while travel and leisure industries remain weak.

Overall, underlying net sales fell by 7.6% in the three months to the end of September, an improvement on the 15.1% drop in the previous three months, and WPP said it remained on track to cut costs and hit its downgraded outlook.

"Given the tightening of COVID restrictions around the world and uncertainty in the global economic outlook, we remain cautious about the pace of recovery," Chief Executive Mark Read said on Thursday.

WPP secured $1.6 billion of new business and said late on Wednesday it had extended its ties with Walgreens Boots Alliance, one of the biggest pitches of the year.

Citi analysts said the improvement was all the more impressive because, unlike peers Publicis, Omnicom and IPG, WPP has a lower exposure to the United States and has also not benefited from buying assets of late.

Underlying net sales were down by 5.1% in North America, compared with a 10.2% drop in the second quarter, and down 6.5% in Britain, after a 23.3% plunge in the previous quarter.

As a result, the company expects to deliver a full-year result within analyst forecasts of a drop between 8.5% and 10.7% in like-for-like net sales, with a midpoint of down 9.6%. That compares with a range midpoint given in August of down 10.75%.

Analysts said the results were ahead of expectations, but traders said the shares fell to a month low, down 3.5%, on the cautious outlook.

(Reporting by Kate Holton; editing by Sarah Young and Mark Potter)

By Kate Holton


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED 5.50% 265.49 Delayed Quote.8.13%
HSBC HOLDINGS PLC -0.84% 408 Delayed Quote.8.61%
OMNICOM GROUP., INC. -0.36% 62.87 Delayed Quote.1.17%
PUBLICIS GROUPE SA 1.23% 43.54 Real-time Quote.5.52%
WALGREENS BOOTS ALLIANCE, INC. -0.12% 48.09 Delayed Quote.20.74%
WPP PLC 2.66% 810.8 Delayed Quote.-1.28%
Latest news "Companies"
05:59pAIRBNB : Our Continued Commitment to Inclusive Travel
PU
05:59pPFIZER : Europeans Clash With Pfizer, BioNTech Over Covid-19 Vaccine Deliveries
DJ
05:58pSHAREHOLDER ALERT : Rigrodsky Law, P.A. Announces Investigation of Jaws Acquisition Corp. Merger
GL
05:57pBiden takes sweeping Day One action on energy, climate, immigration
RE
05:56pSURGICAL SCIENCE SWEDEN : has completed a directed share issue of approximately SEK 322 million
AQ
05:56pMARCUS & MILLICHAP : Capital Corporation Arranges $34.4M Bridge Loan for Williamsburg Multifamily
PU
05:55pPiedmont Office Realty Trust Announces Tax Treatment of 2020 Dividends
GL
05:53pOCA ACQUISITION CORP : . Announces Closing of $149.5 Million Initial Public Offering Wednesday, January 20, 2021
AQ
05:53pJAZZ RESOURCES INC. : Closes Acquisition of Mineral Exploration Interests in Brazil
AQ
05:52pDEEP YELLOW LIMITED (ASX : DYL) December Quarterly Activities Report
AQ
Latest news "Companies"