The advertising recovery that many hoped for at WPP PLC (LSE:WPP) is proving elusive.
UBS has kept its “sell” rating and trimmed its price target to 360p from 363p after the group cut its 2025 revenue and margin guidance once more, pointing to weak demand across its major markets.
Third-quarter figures showed net sales down 5.9% organically, slightly worse than UBS’s forecast of a 4.8% decline.
Total revenue fell 11% year on year to £2.46bn, hit by weaker client spending and currency movements.
The Global Integrated Agencies division, which houses WPP Media and its creative networks, remained the weak spot, with sales down about 6%. Public Relations slipped almost 6% and Specialist Agencies dropped 2%.
Regionally, the picture was mixed but mostly downbeat. Sales fell 9% in the UK, 11% in both Germany and China, and 6% in the US. India was the sole bright spot, up nearly 7%.
Average adjusted net debt improved to £3.4bn from £3.6bn a year earlier, helped by tighter cost control.
WPP now expects like-for-like net revenue to fall between 5.5% and 6% next year, compared with its previous forecast of 3% to 5% lower.
The headline operating margin target has also been cut to about 13%, down from 13.5%. UBS expects the downgrade to trim roughly 7% from 2025 earnings forecasts.
The company plans to share the outcome of its ongoing strategy review early in the new year. For investors, though, patience is wearing thin with a turnaround that still looks some way off.
The shares were down 14% at 309.7p.