Press Release (ePRNews.com) - BLOCKLEY, England - Feb 08, 2017 - The value of WPP’s 19.5% shareholding in US audience measurement company comScore fell further today when the Nasdaq stock market suspended trading in comScore shares. As a result there is a strong probability that WPP will incur an exceptional charge in the region of $197 million when reporting its results for 2016 on 3 March, according to an assessment by Bob Willott, editor of Marketing Services Financial Intelligence.
This morning WPP’s comScore shareholding was worth only $174 million (£140 million), compared with its initial value of about $589 million. WPP had already written down the investment to $371 million at 30 June 2016.
comScore’s shares have been sliding downhill since it emerged that the company had accounted incorrectly for data exchanged with other companies as a result of which profits had been overstated by $10 million over three years.
The situation deteriorated further when comScore conceded that it could not complete the restatement of past financial statements by the deadline imposed by the Nasdaq stock market and consequently faced suspension of trading in its shares.
The value of WPP’s comScore shareholding has fallen by $197 million or 53% from the figure of $371 million included in WPP’s half-year results published last August as the market in comScore shares has looked increasingly unpredictable and uncertainty remained about what the financial restatements would show.
ENDS Source :
Fintellect Publishing Ltd