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Regulatory Story
Company WPP PLC
TIDM WPP
Headline Changes to business sector reporting structure
Released 07:00 05-Aug-2019
Number 8666H07

RNS Number : 8666H
WPP PLC
05 August 2019
 

 

 

 FOR IMMEDIATE RELEASE                                                                                 5 August 2019

 

WPP PLC ("WPP") 

 

Changes to business sector reporting structure

Further to the statement in its first quarter trading update on 26 April 2019 that it would review the appropriateness of its existing business sector reporting, WPP is today announcing the outcome of this review.

A key element of our strategy is to align our technology capabilities more closely with our creative expertise, and to simplify WPP through the creation of fewer, stronger, integrated agencies. As a result, a number of businesses currently reported within Public Relations & Public Affairs, and Brand Consulting, Health & Wellness and Specialist Communications, have been merged with entities within Advertising & Media Investment Management ("AMIM"). These include Wunderman, VML, Ogilvy PR and OgilvyOne.  Additionally, the US healthcare companies have been re-aligned with strong agency partners within AMIM, and Burson Marsteller and Cohn & Wolfe have been merged to form Burson Cohn & Wolfe. 

As a consequence of these moves, which reflect changes in the way we manage the business and report internally, we will report under the following sectors as from the 2019 interim results:

·    Global Integrated Agencies: all of Ogilvy, VMLY&R, Wunderman Thompson, Grey, GroupM and Hogarth.

·    Data Investment Management: the Kantar business.

·    Public Relations: WPP's public relations specialists, as previously reported but excluding Ogilvy PR which now sits within Global Integrated Agencies as part of Ogilvy.

·    Specialist Agencies: more specialised agencies, whether by region or range of services.

This change only affects the business sector reporting structure of the results; there is no change to the Group-level financial statements or the geographical segmentation.

Revenue and revenue less pass-through costs data for the four quarters of 2018 have been restated under the new business sector structure, and are available for download at www.wpp.com/investors/results-presentations-and-reports?page=1. A summary of half year and full year data for 2018, including headline operating profit and margin, under both historical and new business sector structures is presented below.

 

 

REVENUE

 

FIRST HALF

NEW SECTORS                                                                                           OLD SECTORS                                                                                                                                                                                                      

£ million

2018

reported

constant

LFL

 

£ million

2018

reported

constant

LFL

Global Integrated Agencies

4,756

-2.1%

3.0%

2.2%

 

AMIM

3,441

-3.6%

1.1%

2.2%

Data Inv. Mgt.1

1,226

-5.6%

-1.6%

-1.9%

 

Data Inv. Mgt.

1,236

-5.9%

-1.9%

-2.2%

Public Relations

454

-0.2%

5.8%

5.5%

 

PR & PA

581

-2.7%

3.0%

3.7%

Specialist Agencies

1,057

1.5%

6.6%

1.7%

 

BC, HW & SC

2,235

3.0%

8.7%

2.4%

Total Group

7,493

-2.1%

2.9%

1.6%

 

Total Group

7,493

-2.1%

2.9%

1.6%

 

 

 

FULL YEAR

NEW SECTORS                                                                                          OLD SECTORS                                                                              

£ million

2018

reported

constant

LFL

 

£ million

2018

reported

constant

LFL

Global Integrated Agencies

9,930

-1.0%

1.9%

1.4%

 

AMIM

7,132

-3.2%

-0.4%

1.0%

Data Inv. Mgt.1

2,561

-4.3%

-1.7%

-1.7%

 

Data Inv. Mgt.

2,582

-4.5%

-1.8%

-2.0%

Public Relations

932

1.8%

4.7%

4.0%

 

PR & PA

1,211

0.6%

3.4%

3.1%

Specialist Agencies

2,179

-0.2%

2.4%

-0.1%

 

BC, HW & SC

4,677

3.3%

6.3%

1.5%

Total Group

15,602

-1.3%

1.5%

0.8%

 

Total Group

15,602

-1.3%

1.5%

0.8%

 

 

 

 

1.   Data Investment Management in 2018 now excludes £21m of revenue, £13m of revenue less pass-through costs and £8m of headline operating losses from businesses which are not part of the Kantar transaction. The significant majority of these businesses have been closed or sold as part of the ongoing restructuring.

REVENUE LESS PASS-THROUGH COSTS

 

FIRST HALF

NEW SECTORS                                                                                         OLD SECTORS                                                                                                                                                                                            

£ million

2018

reported

constant

LFL

 

£ million

2018

reported

constant

LFL

Global Integrated Agencies

3,844

-4.5%

0.5%

0.2%

 

AMIM

2,639

-7.3%

-2.8%

-0.8%

Data Inv. Mgt.1

940

-4.8%

-0.5%

-1.1%

 

Data Inv. Mgt.

946

-5.1%

-0.8%

-1.5%

Public Relations

430

0.1%

6.0%

5.9%

 

PR & PA

551

-3.0%

2.6%

3.5%

Specialist Agencies

935

0.2%

5.4%

0.1%

 

BC, HW & SC

2,013

2.5%

8.4%

1.9%

Total Group

6,149

-3.6%

1.4%

0.3%

 

Total Group

6,149

-3.6%

1.4%

0.3%

 

 

 

FULL YEAR

NEW SECTORS                                                                                        OLD SECTORS                                                                                                                                                                                            

£ million

2018

reported

constant

LFL

 

£ million

2018

reported

constant

LFL

Global Integrated Agencies

8,071

-2.9%

-0.1%

-0.3%

 

AMIM

5,530

-6.1%

-3.3%

-1.2%

Data Inv. Mgt.1

1,953

-4.1%

-1.2%

-1.5%

 

Data Inv. Mgt.

1,966

-4.2%

-1.3%

-1.8%

Public Relations

880

1.8%

4.7%

4.0%

 

PR & PA

1,136

-0.4%

2.5%

2.6%

Specialist Agencies

1,923

-1.6%

1.2%

-1.5%

 

BC, HW & SC

4,195

2.6%

5.6%

0.6%

Total Group

12,827

-2.6%

0.2%

-0.4%

 

Total Group

12,827

-2.6%

0.2%

-0.4%

 

 

 

 

1.   Data Investment Management in 2018 now excludes £21m of revenue, £13m of revenue less pass-through costs and £8m of headline operating losses from businesses which are not part of the Kantar transaction. The significant majority of these businesses have been closed or sold as part of the ongoing restructuring.

 

HEADLINE OPERATING MARGINS

 

FIRST HALF

NEW SECTORS                                                                                                       OLD SECTORS                                                                                                                                                                                                                                                                                                                                                  

£ million

Revenue less pass-through costs

Headline operating profit2

Headline operating profit margin

 

£ million

Revenue less pass-through costs

Headline operating profit2

Headline operating profit margin

Global Integrated Agencies

3,844

485

12.6%

 

AMIM

2,639

370

14.0%

Data Inv. Mgt.1

940

110

11.7%

 

Data Inv. Mgt.

946

106

11.2%

Public Relations

430

69

16.0%

 

PR & PA

551

84

15.3%

Specialist Agencies

935

119

12.7%

 

BC, HW & SC

2,013

223

11.0%

Total Group

6,149

783

12.7%

 

Total Group

6,149

783

12.7%

 

 

 

FULL YEAR

NEW SECTORS                                                                                                       OLD SECTORS  

£ million

Revenue less pass-through costs

Headline operating profit2

Headline operating profit margin

 

£ million

Revenue less pass-through  costs

Headline operating profit2

Headline operating profit margin

Global Integrated Agencies

8,071

1,239

15.4%

 

AMIM

5,530

947

17.1%

Data Inv. Mgt.1

1,953

296

15.2%

 

Data Inv. Mgt.

1,966

288

14.7%

Public Relations

880

141

16.0%

 

PR & PA

1,136

178

15.7%

Specialist Agencies

1,923

286

14.9%

 

BC, HW & SC

4,195

549

13.1%

Total Group

12,827

1,962

15.3%

 

Total Group

12,827

1,962

15.3%

 

1.   Data Investment Management in 2018 now excludes £21m of revenue, £13m of revenue less pass-through costs and £8m of headline operating losses from businesses which are not part of the Kantar transaction. The significant majority of these businesses have been closed or sold as part of the ongoing restructuring.

 

 

2.   Headline operating profit is as defined in the 2018 Annual Report

 

For more information please contact:

Investors and analysts:

Peregrine Riviere                              +44 7909 907193

Lisa Hau                                            +44 7824 496015

Fran Butera (US)                                +1 914 484 1198                 

Media:

Chris Wade                                       +44 20 7282 4600

Kevin McCormack (US)                      +1 212 632 2239                             

Juliana Yeh (Asia)                                +852 2280 3790

 

Richard Oldworth,                             +44 20 7466 5000 

Buchanan Communications              +44 7710 130 634

 


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