WPP PLC lowered its yearly outlook again on Thursday, after the advertising agency suffered a third quarter that was below expectations with customers reining in spending.

Shares traded 2.3% lower at 675.00 pence each in London on Thursday morning.

WPP said third-quarter revenue declined 1.8% on-year to £3.51 billion, but rose 2.3% like-for-like. Revenue less pass-through costs was 5.0% weaker at £2.84 billion, and down 0.6% like-for-like.

‘Our top-line performance in Q3 was below our expectations and continued to be impacted by the cautious spending trends we saw in Q2, particularly across technology clients with more impact from this felt in GroupM over the summer than the first half,’ Chief Executive Officer Mark Read said.

Read noted WPP won some ‘creative and media assignments’ during the quarter, including pacts with Nestle SA and Verizon Communications Inc.

Looking ahead, WPP now expects 2023 like-for-like revenue, less pass-through costs, to grow between 0.5% and 1.0%. It had previously predicted a rise between 1.5% and 3.0%. That earlier guidance came as a result of WPP cutting its growth guidance from a 3% to 5% range back in August.

Looking slightly further ahead, WPP will hold a capital markets day in January. It will inform on its ‘strategic roadmap to drive growth, further efficiencies and margin expansion over the next three to five years’.

Shares have fallen around 18% year-to-date and hit a roughly three-year low of 656.00p on Thursday.

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