WPP reduces profit expectations while slowing the client’s spending

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WPP, a London -based advertisement agency that is looking for a new executive president, has reduced her expectations for profits and profits this year, and blamed the “difficult economic background”.

The group said on Wednesday that the similar revenues in 2025 when removing the costs of success-paid fees for external suppliers-will decrease by 3-5 percent of poor trading in the first half of the year.

This represents a sharp reduction from its previous Flat’s previous expectations to a 2 % decrease of this year. This estimate was partially based on the assumption that the new business will take during the year, which WPP said has failed to achieve.

The shares of the company fell 14 percent in early trading on Wednesday.

WPP He said that the total economic conditions were highly weighing spending on customers and that there is a new work less than expected. This added that this would lead to a decrease in the operating profit margin from 50 to 175 basis points for the full year.

She said that the similar revenue for the material will decrease by 4.2 percent to 4.5 percent in the second half, after a decrease of 6 percent in the second quarter.

Mark Reed, CEO who He announced his departure In June after a 30 -year profession with the agency, he said: “Since the beginning of the year, we have faced a difficult commercial environment with intense macro pressure and reducing new businesses.”

Read, who will continue as an executive president until the end of the year while the council begins to search for Khalifa, that the group’s performance in June was worse than expected and expected, “This type of trading in the first half continues in the second half.”

The numbers are distinguished again how much the challenge is facing President of Philip YansenThe former CEO of BT with a record of restructuring companies and making deals, which was appointed last year.

The price of the WPP share decreased by more than half during the reading period as an executive head, as the market value increased to about 5 billion pounds.

WPP suffers from poor performance compared to some competing global advertising agencies such as Publicis, but has sought to invest more in artificial intelligence tools as well as services to customers based on data and technology to provide cheaper, faster and more targeted advertising campaigns towards individual consumers.