Financial summary charts

  • Chart showing revenue
    Renevue £m
    RegionPercentage
    North America 35
    UK 12
    Western Continental Europe 26
    Asia Pacific, Latin America,
    Africa & Middle East
    and Central & Eastern Europe
    27

    Reported revenue growth of 7.4% reflected the strength of sterling, primarily against the US dollar. On a constant currency basis, revenues were up over 8% and, on a like-for-like basis, revenues were up over 5% and gross margin up almost 6%.

  • Chart showing headline EBITDA
    2011 headline PBIT1,2 by geography %
    RegionPercentage
    North America 39
    UK 13
    Western Continental Europe 19
    Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe 29

    Headline EBITDA (headline earnings before interest, taxation, depreciation and amortisation) rose by 14.0% to £1.6 billion ($2.6 billion).

  • Chart showing headline PBIT
    2011 revenue1 by sector %
    SectorPercentage
    Advertising and Media Investment Management 40
    Consumer Insight 26
    Public Relations & Public Affairs 9
    Branding & Identity, Healthcare and Specialist Communications 25

    Headline PBIT margin was 14.3% in 2011 against 13.2% in 2010. Headline PBIT was up 16.3% to £1,429 million.

  • Chart showing headline diluted earnings per share
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    Diluted headline earnings per share was up over 19% to a record 67.7p. Dividends were up over 38% to 24.6p per share – an all-time high.

  • Chart showing after text return on average capital
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    After-tax return on average capital employed rose to 11.3%, with the weighted average cost of capital falling to 6.1%.

  • Chart showing relatuve TSR local
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    WPP out-performed the FTSE 100 Index and continued to do well against its 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.
  • Chart showing average bet debt
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    Net debt averaged £2.8 billion in 2011, down £0.2 billion at 2011 exchange rates. The average net debt to headline EBITDA ratio has improved to 1.7 times, well within the Group’s current target range of 1.5 to 2.0 times.

  • Chart showing debt maturity
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    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.

  • Chart showing 2011 revenue by geography
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    Markets outside North America now account for over 66% of our revenues, up from 62% five years ago. The influence of the faster-growing markets outside North America is increasing rapidly.

  • Chart showing 2011 headline PBIT by agency
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    All regions showed good growth with the strongest performance in Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe. Western Continental Europe remains affected by the Eurozone debt crisis.

  • Chart showing 2011 revenue by sector
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    Advertising and Media Investment Management 46
    Consumer Insight 19
    Public Relations & Public Affairs 11
    Branding & Identity, Healthcare and Specialist Communications 24

    Marketing services comprised almost 60% of our revenues in 2011, a similar proportion to 2010. We are no longer an advertising agency, we really are a communications services company.

  • Chart showing 2011 headline PBIT by sector
    2011 headline PBIT1,2 by sector %
    SectorPercentage
    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 improvement 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
The calculation of headline EBITDA is set out in note 31 of the financial statements.
4
Includes corporate bonds, convertible bonds and bank loans payable at par value, excluding any redemption premium due, by due date.

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