Shares of WPP were on track this morning for their worst daily drop since 1992, after the holding company released disappointing Q3 earnings and cut its guidance for the full year. As of 7 a.m. EST, shares of WPP were down as much as 23%, eliminating $3.9 billion in value.
A silver lining in comms. PR and public affairs was the best-performing sector at WPP in Q3, with strong showings in the U.K., Germany, the Middle East, and Asia-Pacific leading to a 2.5% like-for-like revenue increase to $384.7 million. "Improving performance" in PR and public affairs partially offset weak overall growth in North America, according to the holding company. WPP’s PR firms include Burson Cohn & Wolfe and Hill+Knowlton Strategies, as well as Ogilvy.
Don’t overlook this. WPP said it is planning to sell a majority stake in its Kantar market research business, confirming a Wall Street Journal report. The future of Kantar at WPP, or not, has been the subject of intense speculation since former holding company chief Martin Sorrell resigned in April.
Good news, some bad news in Twitter numbers. Monthly active users were down, but daily active users increased by 9% year-on-year. The monthly drop was partially due to the deletion of fake accounts. The company beat expectations for earnings and revenue in the period.
Remember when BrewDog cut ties with U.S.-based craft brewer Scofflaw over its offer to buy Trump supporters a beer? Scofflaw has hired Media House International to help it repair reputational damage and to find another distributor in the U.K. Scofflaw head Matt Shirah said his brewery was "thrown under several buses at one time" during the incident.