SHARES in advertising giant WPP slumped 7 per cent in early trading yesterday after it issued a profit warning.
The agency, which recovered slightly to close the day down 4 per cent, reported its US tech clients are spending less on ads.
As a result it will make less this year and predicted that revenue growth will be limited to a ceiling of just 3 per cent, rather than the previously anticipated 5 per cent.
It did make £7.2billion in the first half of 2023, which represented growth of 3.5 per cent compared with the same period last year.
But its US arm saw a fall in revenue, in a huge blow for the firm and its investors.
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Boss Mark Read said: “The USA was impacted by lower spending from technology clients and some delays in technology-related projects.”
WPP also said its China business grew “less strongly than expected”.
It highlighted increased use of AI in advertising, saying it has delivered work using the tech for clients such as Nestle and Nike.
The news came after tech giant Apple revealed a slowdown in revenues for its third straight quarter amid disappointing iPhone sales.
In one bright spot, Apple said the number of paying subscribers for its digital services has topped a billion.
Meanwhile, Amazon revealed a more upbeat set of figures at its e-commerce business, with sales up 11 per cent year-on-year to £105billion in the three months to June.
Bosses said they worked to make the online shopping giant’s delivery network run faster and smoother.
Capita losses
CAPITA slipped to a £68million loss in the last six months as the outsourcing giant said March’s cyber attack could cost it up to £25million.
As well as the data breach costs, the loss was driven by business exits.
But outgoing boss Jon Lewis said: “We have a resilient business, well positioned for further growth.”
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Driving sales
THE UK’s new car market has recorded a full year of growth as global car part shortages ease.
Some 143,921 new vehicles were registered in July — a growth of 28.3 per cent, said the Society of Motor Manufacturers and Traders.
SMMT boss Mike Hawes said the market was boosted by “innovation”.