WPP delays decision on valuing its comScore shareholding
By: Fintellect Publishing Ltd
Responding to enquiries about why no further provision had been made, WPP told the industry research publication Marketing Services Financial Intelligence that it will re-examine the value of the comScore business compared to the current book value when comScore publishes its delayed financial statements, and will make a judgement then. In WPP's view comScore's current share price has been impacted by the delisting which it regards as "a temporary phenomenon".
When WPP announced its results for 2016 yesterday, its comScore shareholding had a market value of only $265 million (£215 million) based on the price at which the shares were being traded on the US over-the-counter market. That value compares with an initial investment of about $589 million which WPP had written down to $371 million by 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 its shares were delisted as a result.
See also: www.fintellect.com
Robert Willott (editor),
Marketing Services Financial Intelligence