13th Jun 2018 13:19
LONDON (Alliance News) - Advertising giant WPP PLC on Wednesday reported a further decline in revenue in the first four months of 2018, hit by currency exchange rates and weak regional performance.
In a statement at its annual general meeting, FTSE 100-listed WPP said revenue in the four months to the end April declined 3.4% to GBP4.82 billion, although it increased 2.7% at constant currency. At actual currency rates, revenue was hit by the strengthening of sterling against the dollar, euro and other major currencies.
On a like-for-like basis - stripping out acquisitions and currency fluctuations - revenue rose 1.4% in the four months compared to the prior year. In the first quarter, WPP revenue by the same measure declined 0.1% on the year, suggesting WPP had a good April.
WPP noted April had seen strong revenue growth, particularly in Western Continental Europe, Latin America and Central & Eastern Europe. North America was weaker, particularly in the advertising and data investment management businesses.
On a regional basis, North America continued to be the weakest performing region with like-for-like revenue less pass-through costs was down 2.4% for the year to date.
Performance in the UK in the four months was slightly weaker when compared with the first quarter alone, due to a fall in advertising & media investment management and brand consulting.
Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe remained the best performing regions, with four-month like-for-like revenue less pass-through costs growth of 2.1%. However, this was down slightly when compared with the first quarter growth of 2.3%.
Looking ahead, the company said it intends to focus on improving revenue less pass-through costs growth and concentrating on meeting its operating margin objective.
WPP made the statement ahead of its AGM at 1200 BST on Wednesday which will see investors vote on the controversial pay award for founder and former Chief Executive Officer Martin Sorrell.
Sorrell left the company in mid-April after the conclusion of an investigation into what WPP called "an allegation of misconduct" which it said did not "involve amounts that are material" to the company.
Sorrell was replaced by Chairman Roberto Quarta until a successor is found.
Sorrell is in line to receive GBP14 million from WPP, having received GBP48.1 million the year before. He will also hoover up nearly GBP20 million in payouts from WPP over the next five years as part of an exit deal with the firm.
Sorrell's pay award has been a sore point with WPP shareholders for several years, long before his recent departure. WPP did not, however, make any mention of Sorrell or his proposed pay-off in its pre-released AGM statement.
Shares in WPP were trading 1.1% higher at 1,260.00 pence each on Wednesday. A year ago, shares were trading as high as 1,754.00p.
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