LONDON (Reuters) – British advertising group WPP reported a 2.9% rise in first-quarter net sales on Thursday, putting it on track to meet its annual targets as strong demand in Great Britain having made it possible to compensate for the drop in spending by certain American customers in the technology sector.
The title of the group fell by 2.4% on the London Stock Exchange.
WPP, which forecasts 3% to 5% annual growth in like-for-like revenue less pass-through costs, said consumer goods groups had been spending heavily in Britain, which is experiencing double-digit inflation. figures.
This led to sales growth of 7.4% in its home market, well ahead of North America, where revenues increased to a lesser extent (+1.9%) due to lower spending on select customers in technology, digital services and retail.
Chief executive Mark Read told Reuters the company saw the start of a tightening in U.S. tech spending in the fourth quarter, but expected recent strong results from big players. of the sector build trust.
“The focus has been on cost in these companies,” he said. “We expected tech spending to be down and it was down pretty much as we expected,” Mark Read added.
Its French counterpart Publicis beat forecasts in the first quarter thanks to its digital and data-driven business, amid rapidly changing market conditions and with the help of artificial intelligence (AI) tools.
WPP said the group was also deploying AI technology, particularly in its GroupM division, to buy and place ads in real time.
(Report Paul Sandle; Lina Golovnya, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
