WPP is Making Progress on Strategy

Dow Jones
08/07

1641 GMT - WPP reported better-than-expected results and showed signs of progress on its three-year strategic plan, Citi analysts say in a note. Organic growth in revenue less pass-through costs beat expectations in the second quarter, the analysts say. With a 4.7% decline in like-for-like revenue less pass-through costs for the first half as a whole and expectations of an improvement in the second, current consensus expectations of a 5.3% fall for the full year are likely to be upgraded, according to Citi. Moreover, the company's cost-savings target is on track and new business trends are improving, the analysts say. "Additionally, the progress on disposals is a positive and indicative of the potential unseen value in the broader portfolio," they add. Shares close 29% higher, their biggest one-day percentage gain since 1992.

 

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