WPP Lowers Annual Forecast Due to Weak Sales in China

WPP has revised its forecasts for the rest of the year downward, attributing this to a significant revenue decline in China and an uncertain macroeconomic environment. The British marketing company confirmed the sale of its majority stake in the financial communications firm FGS Global, valuing the business at approximately 1.7 billion dollars. Nevertheless, WPP warned that revenues this year will be lower than previously expected. Organic revenue growth, adjusted for external suppliers, is now estimated to range from a one percent decline to a stable value, instead of the previously forecasted slight growth. In the second quarter, WPP's organic revenues decreased by 0.5 percent. While growth was recorded in the USA, India, and Europe, this was offset by a nearly one-quarter decline in China and a more than 5 percent decline in the United Kingdom. Pre-tax profit rose from 204 million to 338 million pounds due to lower costs.