WPP: shares jump after strategy update

(CercleFinance.com) - Shares in WPP jumped on Tuesday after the British advertising and marketing company set a three-year plan of "radical evolution" to improve its financial performance and restore growth.


The group's CEO, Mark Read, said the company's repositioning as a "creative transformation company" has already helped to win new business, including Volkswagen's creative account in North America.

For 2018 and 2019, WPP said it anticipates full-year results to be "in line" with consensus expectations.

The change in like-for-like revenue minus pass-through costs is now expected to be closer to -0.5% this year, versus a previous forecast range of between -0.5% and -1% for 2018.

WPP has set new medium-term financial targets that will enable the company to achieve organic growth that is in line with its peers, with an operating margin of at least 15%, the group said.

Investors cheered this strategy update. WPP shares were up 4.1% at 838 pence in early-morning trading in London.

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