(Alliance News) - WPP PLC on Thursday said revenue for its third quarter declined year-on-year but showed an improvement on the second quarter.
Shares in the FTSE 100 advertising and marketing firm were trading 3.9% lower at 590.80 pence each on Thursday morning in London.
For the three months ended September 20, WPP posted revenue of GBP2.97 billion, down 9.8% from the year prior. On a like-for-like basis, revenue declined 5.5%.
This was an improvement on the second quarter during which revenue of GBP2.74 billion was generated, down 19% year-on-year on a reported basis and 18% on a like-for-like basis.
By region, revenue in North America fell 13% to GBP1.09 billion, UK revenue was unchanged at GBP426 million and Western Continental Europe revenue was down 4.2% at GBP587 million. Revenue for Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe fell 14% to GBP869 million.
For the first nine months of the year, revenue was GBP8.55 billion, down 12% year-on-year and down 9.5% on a like-like basis.
During the third quarter, WPP won USD1.6 billion in new business, taking the total wins to September-end to USD5.6 billion.
Looking ahead, WPP said it expects 2020 like-for-like revenue less pass-through costs and headline operating margin to be within the range of analysts' expectations. Analysts currently expect net sales to fall by between 8.5% to 11%, and headline operating margin to be between 11% and 13%.
The company added it is on track to achieve cost savings towards the upper end of its target of between GBP700 million to GBP800 million.
However, Chief Executive Mark Read added: "Given the tightening of Covid restrictions around the world and uncertainty in the global economic outlook, we remain cautious about the pace of recovery."
Net debt as at September 30 was GBP2.3 billion, down from GBP4.6 billion at the same date in 2019.
By Ife Taiwo; ifetaiwo@alliancenews.com
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