WPP cuts full-year growth forecast as interim profits slump

(Sharecast News) - Advertising giant WPP on Friday cut its like-for-like growth forecast for the full year due as North America revenues fell in the second quarter. The company said it now expected growth of 1.5-3%, downgraded from a previous estimate of 3-5%, driven by lower spending from technology clients.

Interim profit before tax fell more than halved to £204m from £419m a year ago.

"Our performance in the first half has been 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," said chief executive Mark Read.

"This was felt primarily in our integrated creative agencies. 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."

Reporting by Frank Prenesti for Sharecast.com