WPP PLC (LSE:WPP) shares fell after its first-quarter revenue dropped more than expected, led by reduced ad spending at technology companies in the US and a sharp fall in China.
Revenue less pass-through costs came to £2.69 billion in the first three months of the year, a like-for-like decline of 1.6% from a year ago and worse than the City analyst consensus of 1.5%.
On a reported basis the decline was 5.0%, with currency effects accounting for 3.9%.
Of the top five markets, organic growth was down 5.4% in the US, up 0.3% in UK, down 1.9% in Germany and 15.4% in China, while India was up 6.6%. West continental Europe was up 3.3% in the quarter.
New client assignment wins were noted from AstraZeneca, Canon, Molson Coors, Daiichi Sankyo, Nestlé, Perfetti, Perrigo, Rightmove and Telefónica, with net new billings of $0.8 billion, down from $1.5 billion a year ago.
By sector, Tech & Digital Services net revenues are down 9%, from 4.9% in the fourth quarter, with consumer packaged goods up 9.5% from 12.5%.
The shares fell 2.1% to 787p.