WPP, the parent company of agencies including Mediacom, Code Computerlove, JWT and Wavemaker has seen its profits drop sharply.
The world’s second largest advertising group is still restructuring since the sudden exit of Sir Martin Sorrell last year.
Its profit before tax dropped from £2.1bn to £1.4bn over the period, although billings marginally increased from £55.6bn to £55.8bn.
In a statement to the Stock Market this morning it said that 2018 was at the “upper end” of guidance given in October.
“As we have said previously, 2019 will be challenging – particularly in the first half – due to headwinds from client losses in 2018,” said Mark Read, Chief Executive Officer, WPP.
“However, we start the year with fewer clients under review than we did in 2018, and investments in creativity and technology will further improve the competitiveness of our offer.”
The group sold 36 divisions since last April to raise money.
“We are at the beginning of a three-year turnaround plan, but WPP’s new positioning as a creative transformation company with stronger, more integrated, more tech-enabled agencies is already proving effective, having driven several of our recent new business successes,” continued Read.
“As we implement our strategy in 2019 we will continue to put creativity, technology and great work for clients at the heart of our own transformation.”
