Following the loss of clients in the automotive, pharmaceutical and FMCG sectors, WPP has reported a 8.5% decline in first-quarter sales in North America, its largest market.
Net sales for the whole group were down 2.8% and WPP did not change its outlook for the year, stating like-for-like net sales were forecast to drop between 1.5% and 2%
“As anticipated, our first quarter trading update reflects the impact of certain significant client losses in 2018, in particular in the United States,” said CEO Mark Read on Friday.
Revenue in the first quarter of 2019 was £3.588bn, down -1.3% compared with 2018 on a like-for-like basis.
In the UK, 2019 revenues reached £528m, down -0.8% on the same period last year.
However, Read said WPP’s newly formed agencies – including Wunderman Thompson and VMLY&R – are showing “initial signs of success” in new business pitches, including Duracell’s international creative account.[advert position=”left”]
Meanwhile, BCW, the PR agency, has brought in nearly $70 million in new business in its first year.
“Although we face a challenging year, especially in the first half, I am encouraged by how well our people, agencies and clients are responding to our new strategic direction. Our expectations for the full year are unchanged,” Read said.
“As we have said before, it will take time to address the company’s legacy issues, but we are committed to taking all the actions necessary to position WPP for future success.”
Regarding the sale of Kantar, WPP said the process was “progressing well” and was in line with expectations.
“We are pleased with the level of interest in the business from high-quality potential partners,” WPP said.
