WPP has cut its full year revenue guidance as it reported slower than expected spending by its technology clients in the US.
The world’s largest advertising group reported like-for-like revenue growing 2.3% to £3.76 billion in the June quarter and 3.5% in the half year.
WPP now expects full year growth at 1.5%-3%, down from previous estimates of 3.5%.
The June quarter growth rate is at the lower end of results for other global advertising companies.
Omnicom reported organic revenue growing 3.4% and Publicis Groupe 7.1%. Havas posted a 6.3% lift and IPG recorded a 1.7% drop.
WPP CEO Mark Read described the company's performance as resilient with June quarter growth accelerating in all regions except the US.
The US was impacted by lower spending from technology clients and some delays in technology-related projects.
“This was felt primarily in our integrated creative agencies,” he says.
“China returned to growth in the second quarter albeit more slowly than expected.
“In the near term, we expect the pattern of activity in the first half to continue into the second half of the year.
WPP’s media business, GroupM, GroupM reported like-for-like growth in revenue less pass-through costs of 6.1% in the June quarter.
The UK, Europe, Latin America and Asia-Pacific also reported growth.
“Client spending in consumer packaged goods, financial services and healthcare remained good and, despite short-term challenges, our technology clients represent an important driver of long-term growth,” says Read.
WPP says it recorded $US2 billion in net new billings in the six months to June, with the pipeline of potential new business larger than at the same point in 2022.
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