Financial summary charts
Reported revenue growth of 7.4% reflected the comparative weakness of the pound sterling against most currencies, other than the euro. On both a constant currency and like-for-like basis, revenues were up over 5%.
Headline EBITDA (headline earnings before interest, taxation, depreciation and amortisation) rose by 15.8% to £1.4 billion ($2.2 billion).
Headline PBIT margin was 13.2% in 2010 against 11.7% last year. Headline PBIT was up 20.8% to £1,229 million, remaining above £1 billion for the third consecutive year.
Diluted headline earnings per share was up almost 28% to a record 56.7p. Dividends were up 15% to 17.79p per share – an all-time high.
After-tax return on average capital employed rose to 10.1%, with the weighted average cost of capital falling to 6.4%.
WPP out-performed the FTSE 100 Index and continued to do well against its US-based competitors.
- The calculation of ‘headline’ measurements of performance (including headline EBITDA, headline PBIT and headline earnings) is shown in note 31 of the financial statements.
- Calculated gross of goodwill and using profit after taxation before goodwill impairment and other goodwill write-downs, revaluation of financial instruments, amortisation and impairment of acquired intangible assets, share of exceptional losses/gains of associates, costs incurred in 2008 in changing the corporate structure of the Group and investment gains/losses and write-downs, and adjusted to reflect taxes and net finance costs paid.
- Measured on a common currency basis.
Net debt averaged £3.1 billion in 2010, down £0.3 billion from £3.4 billion in 2009 at 2010 exchange rates. Headline interest cover in 2010 was 6.3 times.
The Group continues to work to achieve continuity and flexibility of funding. Undrawn committed borrowing facilities are maintained in excess of peak net-borrowing levels and debt maturities are monitored closely.
|Western Continental Europe||26|
|Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe||27|
Markets outside North America now account for 65% of our revenues, up from 61% five years ago. The influence of the faster-growing markets outside North America is increasing rapidly.
|Western Continental Europe||19|
|Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe||29|
The most surprising feature of 2010 was the relatively strong performance of North America. Western Continental Europe is still feeling the effects of the recession.
|Advertising and Media Investment Management||40|
|Public Relations & Public Affairs||9|
|Branding & Identity, Healthcare and Specialist Communications||25|
Marketing services comprised 60% of our revenues in 2010, a similar proportion to 2009. It is no longer accurate to call us an advertising agency, we are a communications services company.
|Advertising and Media Investment Management||46|
|Public Relations & Public Affairs||11|
|Branding & Identity, Healthcare and Specialist Communications||24|
PBIT contributions were broadly in line with revenues, with all sectors showing a strong recovery in reported operating margins.
- Percentages are calculated on a constant currency basis. See definition in the Financial glossary.
- The calculation of headline PBIT is set out in note 31 of the financial statements.
- Interest excludes the revaluation of financial instruments.
- Includes corporate bonds, convertible bonds and bank loans payable at par value, excluding any redemption premium due, by due date.