WPP PLC, the world’s largest advertising group, has lowered its full-year outlook after not doing as well as expected from the Olympics, the U.S. presidential campaign and the European soccer championships.
Shares opened 5 percent lower at 768.3 pence in London as the company said Thursday that it expected revenue growth between 2.5 percent and 3 percent for the year, down from the 3.5 percent target it set in August.
Third quarter revenue was up 1.6 percent to 2.5 billion pounds ($4 billion). The company did not disclose profit figures in the trading update.
“In some ways, the company is a proxy for the global economy and, even into 2013 WPP is managing down expectations,” said Richard Hunter, head of securities at Hargreaves Lansdown Stockbrokers.
“The reaction of the share price in early trade is testament to a market which is searching for corporate good news stories, but is finding them hard to locate,” Hunter said.
WPP said the three big events did support growth but not as much as expected, with money often switched from existing budgets, “particularly in the cases of the UEFA Championships and Olympics.”
Revenue fell by 0.4 percent in North America and 2.1 percent in western continental Europe, WPP said. Latin America was the best-performing region with growth of nearly 15 percent.
WPP said that in the U.S. it was worried about the government’s handling of debt and the looming “fiscal cliff” of expiring tax and spending legislation, which could result in automatic tax increases at the end of the year if politicians do not agree on new budget terms.
“Fears remain that whoever wins the presidential election, will be unable to deal with these issues given a dead-locked Congress,” the company said.
Writers of “Conclave,” “Say Nothing” Win Scripter Awards
The authors and screenwriters behind the film “Conclave” and the series “Say Nothing” won the 37th-annual USC Libraries Scripter Awards during a black-tie ceremony at USC’s Town and Gown ballroom on Saturday evening (2/22).
The Scripter Awards recognize the year’s most accomplished adaptations of the written word for the screen, including both feature-length films and episodic series.
Novelist Robert Harris and screenwriter Peter Straughan took home the award for “Conclave.”
In accepting the award, Straughan said, “Adaptation is a really strange process, you’re very much the servant of two masters. In a way it’s an act of betrayal of one master for the other.” He joked that “You start off with a book that you love, you read it again and again, and then you end up throwing it over your shoulder,” crediting author Robert Harris for being “so kind, so generous, so open throughout.”
In the episodic series category, Joshua Zetumer and Patrick Radden Keefe won for the episode “The People in the Dirt” from the limited series “Say Nothing,” which Zetumer adapted from Keefe’s nonfiction book about the Troubles in Ireland.
Zetumer referenced this year’s extraordinary group of Scripter finalists, saying “projects like these reminded me of why I wanted to become a writer when I was sitting in USC’s Leavey Library dreaming of becoming a screenwriter. If you fell in love with movies, or fell in love with TV, chances are you fell in love with something dangerous.”
Special guest for the evening, actress and producer Jennifer Beals, shared her thoughts on the impact of libraries. “If ever you are at a loss wondering if there is good in the world,” she said, “you have only to go to a... Read More