WPP group PLC (LON:WPP) has reported better than expected first-quarter net sales leading the world's biggest advertising group to reiterate its full-year guidance
In the first set of results to be published without founder Martin Sorrell, who stepped down earlier this month, the FTSE 100-listed firm said its adjusted like-for-like net sales were down 0.1% in the first quarter of 2018, much better than the around 1% decline expected by analysts.
READ: WPP CEO Martin Sorrell retires after internal probe into alleged personal misconduct
The firm saw its first-quarter reported revenue fall by 4.0% to £3.555bn, reflecting currency headwinds of 6.0%, though in constant currency like-for-like revenue was up 0.8%.
WPP said net new business of US$1.737bn billings were won in the first quarter
The firm is currently looking for a new chief executive after Sorrell stepped down over two weeks ago due to an investigation into alleged personal misconduct.
The company’s joint chief operating officers Mark Read and Andrew Scott, running the company in Sorrell's absence, said they would review the group's strategy, focus on growth and address the parts of the business that are struggling.
Roberto Quarta, WPP’s executive chairman, said: "We are pleased to announce the Group's first quarter trading update, which is in line with our expectations. Our guidance for 2018 remains unchanged.”
He added: "Mark Read and Andrew Scott are providing the stability and leadership WPP requires, but there is no standing still.
“They have my and the Board's full backing to review the strategy, to come back to us with recommendations, and to move forward decisively to implement our vision for the Group.”
Shares nearly 7% higher
In a note to clients, analysts at Liberum Capital commented: “WPP’s Q1 trading update was better than expected with net sales down 0.1% organically vs expectations of -0.9% and comments on the crucial Media part suggesting it continues to trade ‘well’.”
They added: “Together with the press reports that WPP is looking to sell its Market Research assets, the numbers should help the shares and start to close the >30% underperformance YTD against the best performing Agency group Interpublic.”
Liberum repeated a ‘buy’ rating and 1,750p price target on WPP shares which in early morning trading were up nearly 7% at 1,228.5p.
-- Adds broker comment, share price --