WPP’s (LON:WPP) share price has climbed higher in London in today’s session as the FTSE 100 company announced that it had sold its interest in sports, entertainment and communications group Chime. The move comes as the ad agent looks to simplify its operations as part of its new strategy.
As of 08:46 BST, WPP’s share price had added 0.85 percent to 998.60p, largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.87 percent higher at 7,490.17 points. The group’s shares have given up more than 16 percent of their value over the past year, as compared with about a two-percent drop in the Footsie.
WPP sells interest in Chime
WPP announced in a statement this morning that it had sold its minority shareholding in Chime Group Holdings Limited, the sports, entertainment and communications group, to the majority shareholder Providence for £54.4 million and potential additional amounts based on the future value of Chime.
The FTSE 100 company explained that the disposal was in line with its new strategy as set out in December last year, which includes the ad giant focusing on its main areas of business and simplifying its operations through the disposal of non-core assets.
Analysts on advertising group
The 22 analysts offering 12-month targets for the WPP share price for the Financial Times have a median target of 1,017.50p, with a high estimate of 1,520.00p and a low estimate of 800.00p. As of June 28, 2019, the consensus forecast amongst 26 polled investment analysts covering the ad giant has it that the company will outperform the market.
WPP updated investors on its first-quarter performance in April, disclosing a fall in revenue, while reaffirming its full-year guidance. The company is scheduled to post its interim half-year results next month.