LONDON (Reuters) – British advertising group WPP recorded an organic fall in revenue of 1.6% in the first quarter, notably due to the loss of a contract with Pfizer and a drop in spending by technology companies.
WPP, which had already warned that any organic growth this year would be concentrated in the second half, reiterated on Thursday its forecast for stable growth at 1% in 2024, with an improvement in the margin of 20 to 40 basis points.
WPP shares fell 3.21% on the London Stock Exchange at 07:40 GMT.
According to chief executive Mark Read, the quarter was “very much in line with expectations”, with a high basis of comparison to the same period last year.
“We remain on track to return to growth over the remainder of the year, thanks to an encouraging portfolio of new contracts and the strength of our creative and media activities,” he added.
Publicis, WPP’s rival, published better-than-expected quarterly results earlier this month, in the wake of its data and media activities, consolidating a unique position in an otherwise sluggish industry.
(Reporting Paul Sandle; French version Stéphanie Hamel, editing by Kate Entringer)
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