As WPP’s revenue declined only 0.1 percent in the first quarter of 2018, exceeding forecasts that had predicted a more significant slowdown in the world’s largest advertising company. New business was also healthy 1.737 billion for the quarter.
This report was prepared in the most dramatic period of several decades for the holding, which recently parted ways with longtime CEO Martin Sorrell and settled high-profile case of sexual harassment. Its release led to conservative optimism, despite the high degree of uncertainty regarding the continuity of management of the company and its changing business models, and the price wpp share reached 8 percent at the press conference.
In fact, the network has reported flat growth, with the loss of the United States to oppose the best performance in Europe and emerging markets. Combined with last week’s news that IPG has surpassed the industry in General, call the WEC some Express a more positive Outlook for advertisers in General moving forward.
“I don’t think the WEC needs to start selling assets. They need re-vision, if you will.”Jay Pattisall, an analyst at Forrester
“We are pleased to announce the first trading update of the group the quarter, which is in accordance with our expectations. Our guide to the year 2018 will remain unchanged,” – said the Chairman of the Board of Directors Roberto Quarta in a statement. “Mark as read and Andrew Scott provide stability and leadership, the WEC requires, but is not necessary. They are mine and the Commission fully supported to revise the strategy to get back to us with recommendations and move forward to realize our vision for the group.”
One notable difference between this and the earlier earnings calls: read acknowledged that consulting companies like accenture and Deloitte “all” competing with WPP for its business worldwide. Sorrell long minimised the same claim.
“I think the industry is starting to see this as a big problem,” said principal analyst at Forrester Jay Pattisall. “They are all aimed at new party industry consultants.” He refers to the January report on how these organizations began to introduce creative services for its strategic bases, the reverse mirror image of how the wpp and its agencies structure their placement.
Pattisall brought rave reviews to work from wpp “optimistic”.
“Some of these thinking were conducted with the expectation that Martin’s gone, something terrible was to be announced in the Finance, and this is clearly not the case,” he said.
The report also included comments from reading and co-chief operating officer Andrew Scott reiterated that the language used in all the staff Memorandum, designed to reassure employees of WPP worldwide, following the news about the Sorrell.
“In the last two weeks we have been focused on spending time with our customers and people, and the response was very encouraging. As expected, Our people continue to go about their business as usual, and our clients expressed their continued support and confidence in the WPP,” they write.
In conclusion, in the note “to focus our efforts on stimulating growth for our clients, but also to organize groups to make this possible, this is the best method for the recovery of the wind farm and all stakeholders”.
To read not to talk of the incorporation of elements of the CCD, and the report does not directly address the issue. The times in the UK, however, reported over the weekend that the heads of the research division of Kantar media started to talk with banks about the possibility of selling—a move expected by some analysts as a potential first step in the disintegration of the group.
Review from analyst Brian Wieser of the pivotal research noted that the wind farm will be the best quarter excluding working Kantar network—but Forrester Pattisall said that the organization still has the value of VES, especially in terms of research and data services, which could strengthen its ability to compete with consulting companies.
“I don’t think the WEC needs to start selling assets,” said Pattisall. “They need re-vision, if you will. Martin, of course, was a vision; he has taken the company to amazing heights, and they need to awaken moving forward. Mark [read] there are very different points of view coming from a digital background, but they have some work in front of them in terms of relief of that vision.”