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WPP today reported a 0.8 percent dip in Q3 revenues to $4.8B as CEO Mark Read promised "decisive action and radical thinking" to turn around the ad/PR combine.
That bold action includes reviewing strategic options for Kantar, the No. 1 data, insights and consulting unit.
WPP's lackluster financials sparked a sell-off as its US shares are down 18 percent to $57.45.
Read said WPP faces "structural change, not structural decline" and was hindered in the past for being too slow to adapt, overly complicated and under-invested in core parts of the business.
He's developed a plan to simplify the organization, invest more in creative talent, establish a common data and technology strategy and make it easier for clients to access offerings throughout WPP.
Read is soliciting partners for Kantar to unlock the full potential of the research giant.
He expects WPP will remain an investor in Kantar with strategic links to ensure clients benefit from its expertise.
WPP has suffered a recent string of major client losses including Ford creative and American Express, HSBC, United Airlines and GSK for primarily media work.
It's defended BP, Mars, Shell, T-Mobile, Mondelez and Adidas.
A weak North America market hurt WPP's Q3 performance as the $1.9B unit posted a 1.5 percent drop in reported revenues.
WPP's PR unit (Hill+Knowlton Strategies, Ogilvy, Finsbury, BCW Group), also lagged, registering a 0.5 percent gain in reported revenues to $385M.
The group was up 2.6 percent on a like-to-like basis.
Read also announced the retirement of group finance director Paul Richardson, who will exit next year after 23 years of service to the company.
Public Policy Holding Company grew 27.5 percent to $50.1M during Q1, powered by the accelerating contribution from recent acquisitions and a 5.1 percent hike in organic revenues across its three operating segments.
Institutional Shareholder Services advises investors to vote "no" on a compensation package for WPP chief Cindy Rose at the May 8 annual meeting.
FTI Consulting chalked up a 9.5 percent rise in Q1 revenues to $983.3M, powered by gains in its PR, corporate finance and technology segments.
Stagwell reports 4 percent growth in Q1 net revenues to $585M and a record $141M in net new business wins.
WPP reported a 6.7 percent drop to $3.1B in Q1 like-like revenues less pass-through costs. CEO Cindy Rose says 'it will take time to outpace historical losses."
