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Market Update

WPP Misses Forecast on Client Loss; Gemalto, Berendsen Fall


Author: Sarla Buch
ticker.com
Last Update: 10:45 AM ET March 04 2017

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.

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.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc