Not plain sailing, but Sorrell stays upbeat

With big global events such as the Rio Olympic Games to come next year, the boss of WPP is confident that ad spending will increase
With big global events such as the Rio Olympic Games to come next year, the boss of WPP is confident that ad spending will increase
BUDA MENDES/GETTY IMAGES

The world’s largest advertising group has soothed concerns that its full-year targets were at risk after reporting a bounce in like-for-like revenue for July.

WPP set a target of 3 per cent growth in net sales but like-for-like sales increased by only 2.3 per cent in the first six months of the year. With an estimated $20 billion of advertising contracts up for review this year and a “tepid” outlook for corporate spending, as described by Sir Martin Sorrell, the company’s founder and chief executive, market observers say that the pressure is on WPP to deliver a strong second half in a challenging macroeconomic environment.

Meanwhile, sales last month rebounded to 3.7 per cent growth, indicating a stronger third quarter.

Interim pre-tax profit surged 45