WPP PLC (LSE:WPP) shares fell on Thursday as the advertising giant reported slower growth in the first quarter, although client companies "continued spending" in communications, customer experience, commerce, data and technology despite recession worries in several major economies.
On a like-for-like (LFL) basis growth was 4.9% for the first three months of 2023 compared to the same period last year. When pass-through costs are excluded, LFL growth was 2.9%.
The FTSE 100-listed group said this demonstrated "continued momentum", but was down from the 6.9% growth in LFL less pass-through costs seen across the whole of last year and 6.4% in the fourth quarter.
Total revenue rose 11.9%, helped by previous acquisitions, with new additions of influencer marketing specialists Obviously and Goat among the three made during the quarter.
Net new business of roughly US$1.5bn was won in the quarter, including from Adobe, Ford and Mondelēz, with chief executive Mark Read saying it had been a "positive start to the year, in line with expectations".
He said the group remains "on track" to deliver full-year guidance.
The shares fell 2% to 935p in early trading, following a rebound in the year to date from losing a quarter of their value last year.