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Financial summary charts

2006	5,908
2007	6,186
2008	7,477
2009	8,684
2010	9,331

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%.

2006	1,002
2007	1,072
2008	1,291
2009	1,243
2010	1,439

Headline EBITDA (headline earnings before interest, taxation, depreciation and amortisation) rose by 15.8% to £1.4 billion ($2.2 billion).

2006	859
2007	928
2008	1,118
2009	1,017
2010	1,229

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.

2006	41.2
2007	45.8
2008	55.5
2009	44.4
2010	56.7

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.

2006	11.5
2007	11.8
2008	12.3
2009	8.9
2010	10.1

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.

¹: The calculation of ‘headline’ measurements of performance (including headline EBITDA, headline PBIT and headline earnings) is shown in note 31 of the financial statements.
²: 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.
³: Measured on a common currency basis.

Average net debt and interest cover multiples

2006	1,214
2007	1,458
2008	2,206
2009	3,448
2010	3,056

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.

2011	–
2012	100
2013	514
2014	1,268
2015	429
2016	643
2017	400
2018	–
2019	–
2020	200

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.

North America	35
UK	12
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.

North America	39
UK	13
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
Consumer Insight	26
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
Consumer Insight	19
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.

¹: Percentages are calculated on a constant currency basis. See definition in the Financial glossary.
²: The calculation of headline PBIT is set out in note 31 of the financial statements.
³: Interest excludes the revaluation of financial instruments.
⁴: Includes corporate bonds, convertible bonds and bank loans payable at par value, excluding any redemption premium due, by due date.