When we last heard from WPP PLC (LON:WPP), it was crowing over the poaching of Argos boss John Rogers to spearhead its new growth strategy as its new finance chief.
WPP has had a tough time in recent years, with shares sliding 50% between 2017 to 2019, and the first half of this year saw the marketing behemoth’s profits drop by 44%.
Friday’s third-quarter trading update is expected to see organic revenue growth worsen, according to Deutsche Bank, which is forecasting a fall of 1.7% for the full year.
Big ad agencies are continuing to suffer from competition with Google and Facebook, which have wreaked havoc on traditional marketing, with sector-mate Publicis cutting its full-year guidance last week for the second time in three months last week.
Deutsche also noted the likely impact of “global growth uncertainty feeding into marketer budgets” across the sector, and WPP’s exposure to China, where it employs 14,000 staff.
Barclays to provide Q3 update
Meanwhile, Barclays Plc (LON:BARC) will follow RBS in reporting its third-quarter update this week ahead of more banks next week.
Boss Jes Staley has seen off activist investor Edward Bramson but eyes will be on whether the performance of the investment banking arm can build on its strong second quarter.
As with its rivals, investors may also be keeping track of the impact of PPI claims on the bank’s figures.
Significant events on Friday 25 October:
Trading statement: Barclays Plc (LON:BARC), Essentra Plc (LON:ESNT), Hastings Group Holdings PLC (LON:HSTG), WPP PLC (LON:WPP)
AGMs: Trafalgar Property Group PLC (LON:TRAF)
Economic announcements: German IFO survey, US Michigan consumer sentiment