WPP Misses Forecast on Client Loss; Gemalto, Berendsen Fall

Sarla Buch
04 Mar, 2017
New York City

Berendsen plunged 11% on weak profit forecast. Freenet profit soared 19%. Gemalto net fell 12% on flat revenues. WPP tumbled on latest loss of major clients and slower than expected revenue growth in the current year.

[R]4:00 PM Frankfurt – Berendsen plunged 11% on weak profit forecast. Freenet profit soared 19%. Gemalto net fell 12% on flat revenues. WPP tumbled on latest loss of major clients and slower than expected revenue growth in the current year.[/R]

In London trading, FTSE 100 index fell 15.06 or 0.2% to 7,366.61 and in Frankfurt the DAX index slipped 46.63 or 0.4% to 12,013.74.

In Paris, CAC 40 index advanced 22.05 or 0.4% to 4,984.83.

For the week, FTSE 100 index gained 1.7%, the DAX index increased 1.8% and the CAC 40 index jumped 2.9%.

Berendsen Plc plunged 11.8% to 820 pence after the U.K.-based industrial laundry service provider said revenues in the year ending in December jumped 9% from a year ago to £1.1 billion.

Net increased in the year rose 2.9% from a year ago to £91.5 million from £88.9 million and diluted earnings per share increased to 53.2 pence from 51.8 pence.

The industrial laundry service provider said operating profits in the year increased to £161 million from £153.8 million in 2015 but forecasted operating profits in fiscal 2017 of about £150 million.

Berendsen plans to invest £150 million per year in plant and machinery in each of the next 3 years

Freenet AG jumped 2.3% to €29.13 after Germany-based communication network services provider reported group revenues in the year ending in December soared 7.8% from a year ago to €3.4 billion and operating profit surged 18.5% to €438.8 million.

The communication network services provider said mobile revenue increased mainly due to an increase in customer count of 232,000 customers to 9.53 million from 9.30 million.

In a statement, Freenet said the newly created TV and media business in the latest fiscal year contribution revenue of €218.9 million.

Gemalto soared 6.9% to €61.24 after the Netherland-based digital security services provider stated revenues in the year ending in December were flat compared to a year ago at €3.12 billion.

Net income in the year plunged 12.1% from a year ago to €266.9 million from €303.5 billion and diluted earnings per share slipped to €2.97 from €3.41.

Gemalto said platforms and services revenue exceeded €1 billion after gross margin increased 155 basis points to 40.5%.

WPP Plc tumbled 8.5% to 1,748.88 pence after the U.K.-based communication and advertising services provider reported revenues in the year ending in December jumped 17.6% from a year ago to £14.4 billion.

Net income in the year surged 20.6% from a year ago to £1.5 billion from £1.2 billion and diluted earnings per share advanced to 108 pence from 80.4 pence.

The advertising services provider forecasted slower growth in 2017, reflecting a loss of key clients like Volkswagen and AT&T and a fewer new contracts in recent months.

The agency estimated about 2% growth in net sales in 2017.