WPP downgrades full-year growth forecast

WPP has cut its full-year growth forecast to 5% after reporting organic revenue growth of 4.7% in Q3 – down from 6.7% and 5.6% growth in Q1 and Q2.

Sir Martin Sorrell’s company had expected to post full-year growth of 6%, but saw a slow down in the third quarter to 4.7% on revenues of £2.45 billion amid the current economic climate.

WPP is also behind rival agencies, which delivered positive Q3 growth – Omnicom is up 7.2%; Maurice Lévy’s Publicis 6.4%; and Vincent Bolloré’s Havas 7.3%.

WPP’s North America regions posted like for like revenue growth of 1.7% (North America accounts for 34% of total WPP revenues). Western Europe saw like for like revenue growth of just 1.3%.

However, the group’s UK operation recorded like for like revenues up 6.7%; while WPP’s emerging markets were up 10.5%.

The company said that “the continuous macroeconomic gloom and despair in the media and elsewhere must have some impact on both corporate and consumer confidence”.

Read the full Guardian article here.