WPP expected to cut forecast

WPP is expected to cut its full-year sales forecast for the second time in six months this week.

Sir Martin Sorrell
Sir Martin Sorrell

Analysts expect the Sir Martin Sorrell-led marketing services group, which owns JWT, Mediaedge:cia and Hill & Knowlton, to report sales for the first six months of the year dipped 7.9% to £4.27bn when it reports on Wednesday (24 August).

In April, Sir Martin said he expected a mid-single digit decline for the full-year, revising down his prediction of a 2% dip earlier in the year but expectations are that the group might now fall short of the revised forecast.

The group’s margins, forecast to come out below 10% for the half-year, are expected to be hit by severance costs relating to staff cuts. WPP has cut nearly 7,000 staff in a bid to reduce costs.

WPP is the last of the major marketing groups to report second quarter figures. Interpublic, owner of McCann Erickson and Lowe, reported revenue fell 14.5% in the three months to 30 June, while Publicis Groupe, owner of Starcom and Saatchi & Saatchi, said revenues dipped 6.6%. Omnicom sales dropped 11%.

Shares in WPP rose 4.26% this morning on hopes that the group would be upbeat in its statement.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here