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WPP has downgraded its forecasts for the rest of the year, reflecting a steep fall in sales in China and an uncertain macroeconomic environment.
The UK marketing group confirmed the sale of its majority stake in financial communications firm FGS Global, valuing the business at about $1.7bn.
However, it warned revenues would be lower this year than previously expected. Like for like revenue, when removing fees paid to external suppliers, was forecast between 1 per cent lower and flat, rather than the slight growth forecast previously.
WPP said like-for-like revenues had fallen 0.5 per cent in the second quarter. Growth in the US, India and Europe was outweighed by a fall of almost a quarter in China and more than 5 per cent in the UK. Profit before tax rose to £338mn from £204mn, reflecting lower costs.
