WPP reports slowdown in revenue growth

Advertising and marketing company WPP reported a slowdown in like-for-like revenue growth today, missing forecasts and sending…

Advertising and marketing company WPP reported a slowdown in like-for-like revenue growth today, missing forecasts and sending its shares down as much as 5 per cent.

The company said like-for-like revenues rose over 4 per cent in the third quarter of its fiscal year, with pressure in United Kingdom and eastern European markets slowing growth from 5 per cent in the first half.

The average forecast was for like-for-like revenue of over 5 per cent, according to a Reuters poll of eight brokerages. WPP said operating margin was in line with its full-year target of 14.5 per cent, compared with 14 per cent in 2005.

Quarterly reported revenues rose by 4.6 per cent to £1.41 billion. British newspapers, TV and radio companies have been hampered by a persistent downturn in the advertising market.