WPP plc (NYSE:WPP) lost considerable ground Tuesday after reporting 2018 interim results.
WPP Reported revenue was down 2.1% at £7.493 billion, impacted by currency headwinds of 5.0%. Constant currency revenue up 2.9%, like-for-like revenue up 1.6% (Q2 up 2.4%) As well, constant currency revenue less pass-through costs were up 1.4%, like-for-like revenue less pass-through costs up 0.3% (Q2 up 0.7%).
Headline profit before interest and tax £821 million was down 7.0%, down 2.3% in constant currency. Headline PBIT margin 13.3% was down 0.5 margin points reportable and constant currency was down 0.4 margin points like-for-like.
CEO Mark Read said, "The second quarter of 2018 was WPP’s first quarter of like-for-like growth since Q1 2017, and the company has performed strongly in terms of winning and retaining business over the period.
"At our first quarter trading update we said there was no standing still, and in the last few months we have made progress in a number of important areas.
"We have focused our efforts on providing more effectively integrated solutions to clients and, in competitive pitches, we have won or grown business with clients including Adidas, Hilton, Mars, Mondelez, Shell and T-Mobile.
"We have looked at our offering and begun to focus our portfolio through 15 disposals and divestments, including Globant and AppNexus, generating cash proceeds of £676 million so far this year, which will also strengthen our balance sheet and improve our average net debt to EBITDA ratio."
Shares fell $6.12, or 7.4%, to $76.68 mid-morning Tuesday
