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Advertising agency WPP has cut its annual revenue forecast as US tech clients scale back their spending.
London-listed WPP said on Friday that it expects revenues to grow between 1.5 per cent and 3 per cent, lower than a previous range of 3 per cent to 5 per cent.
WPP shares opened down almost 6 per cent after the update.
The gloomier outlook from WPP echoes that of rival agencies in recent weeks as companies prune their marketing budgets. The company singled out a slowdown in the US, which had offset an upswing in China.
“Our performance in the first half has been resilient with Q2 growth accelerating in all regions except the USA, which was impacted in the second quarter by lower spending from technology clients and some delays in technology-related projects,” said chief executive Mark Read.
The warning from WPP follows disappointing results from competitors, including UK-based S4 Capital and US agency Interpublic.
WPP’s pre-tax profits for the first six months of the year fell to £204mn from £419mn in the same period in 2022.