WPP cut its full-year sales forecast for the second time this year, as a decline in client spending deepened in the third quarter, prompting new Chief Executive Cindy Rose to label the performance "unacceptable" and vow swift action.
The world's largest advertising group now expects its key metric, like-for-like revenue less pass-through costs, to fall between 5.5% and 6.0% for 2025, down from a previous forecast of a 3% to 5% decline.
For the third quarter, that same revenue measure fell 5.9% on a like-for-like basis, with the company citing client losses and spending cuts in North America and the U.K.
"I acknowledge that our recent performance is unacceptable and we are taking action to address this," said Ms. Rose, who took the helm in September.
The company said a strategic review is underway, focused on simplifying its business, improving execution, and harnessing artificial intelligence.
The decline was driven by a deterioration in its media planning and buying business and weakness among clients in the consumer packaged goods, automotive, and technology sectors, according to the company.
Third-quarter revenue was 3.3 billion British Pounds, down 8.4% on a reported basis from the same period last year.
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