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| Mark Read |
WPP CEO Mark Read slashed the firm's 2023 growth forecast from the 3 percent to 5 percent range down to 1.5 percent to 3 percent as the US technology slump took its toll on 1H revenues.
Technology revenues, which account for 18 percent of WPP’s sales, slipped 4.9 percent during the 1H. WPP counts Google, Meta and Microsoft as clients.
That lackluster tech performance held WPP’s overall revenue growth to 3.5 percent, hitting $9.6B.
Read said the financial results were “resilient with Q2 growth accelerating in all regions except the USA, which was impacted in the second quarter by lower spending from technology clients and some delays in technology-related projects.”
The US, which generates 37 percent of WPP's business, posted a 4.5 fall in 2Q fall in revenues after a 2.3 percent 1Q gain.
WPP’S PR group recorded 2.1 percent growth in 1H revenues to $748M.
Hill+Knowlton Strategies and FGS Global posted strong results, while BCW recorded a slight dip in revenues.
Stagwell registered an eight percent rise in Q1 revenues to $670M and a $1.3M net loss compared to a $1.4M profit last year.
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
Why financial planning always plays a crucial role in every PR firm’s success.
Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
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