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.