REG - WPP PLC - 2017 Interim Results <Origin Href="QuoteRef">WPP.L</Origin> - Part 4
23/08/2017 07:06
- Part 4: For the preceding part double click ID:nRSW7211Oc
Basic earnings per ordinary share 59.8¢ 27.5¢ 117.5 141.5¢
Diluted earnings per ordinary share 59.2¢ 27.2¢ 117.6 139.6¢
Headline earnings per share3
Basic earnings per ordinary share 58.2¢ 56.7¢ 2.6 151.6¢
Diluted earnings per ordinary share 57.6¢ 56.0¢ 2.9 149.5¢
1 The unaudited condensed consolidated income statement above is presented in reportable US Dollars for information
purposes only and has been prepared assuming the US Dollar is the presentation currency of the Group, whereby local
currency results are translated into US Dollars at actual monthly average exchange rates in the periods presented. Among
other currencies, this includes an average exchange rate of US$1.2591 to the pound for the period ended 30 June 2017
(period ended 30 June 2016: US$1.4330; year ended 31 December 2016: US$1.3547).
2 Margin points.
3 The basis of the calculations of the Group's earnings per share and headline earnings per share are set out in note 9 of
Appendix 1.
Appendix 3: Interim results for the six months ended 30 June 2017 in
reportable Euro1
Unaudited illustrative condensed consolidated interim income statement for the six months ended 30 June 2017
E million Six months ended 30 June 2017 Six months ended 30 June 2016 +/(-)% Year ended 31 December 2016
Billings 31,289.5 32,486.2 (3.7) 67,305.1
Revenue 8,609.1 8,384.2 2.7 17,527.2
Direct costs (1,211.5) (1,209.5) (0.2) (2,429.2)
Net sales 7,397.6 7,174.7 3.1 15,098.0
Operating costs (6,558.5) (6,468.3) (1.4) (12,627.2)
Operating profit 839.1 706.4 18.8 2,470.8
Share of results of associates 68.3 20.3 236.5 60.1
Profit before interest and taxation 907.4 726.7 24.9 2,530.9
Finance income 52.1 56.1 (7.1) 99.5
Finance costs (155.2) (157.5) 1.5 (311.4)
Revaluation of financial instruments 95.6 (82.7) - (62.2)
Profit before taxation 899.9 542.6 65.8 2,256.8
Taxation (171.7) (182.6) 6.0 (469.9)
Profit for the period 728.2 360.0 102.3 1,786.9
Attributable to:
Equity holders of the parent 684.6 313.8 118.2 1,665.0
Non-controlling interests 43.6 46.2 5.6 121.9
728.2 360.0 102.3 1,786.9
Headline PBIT 1,021.7 980.5 4.2 2,604.2
Net sales margin 13.8% 13.7% 0.12 17.2%
Headline PBT 918.6 879.1 4.5 2,392.3
Reported earnings per share3
Basic earnings per ordinary share 54.1¢ 24.4¢ 121.7 130.3¢
Diluted earnings per ordinary share 53.5¢ 24.1¢ 122.0 128.5¢
Headline earnings per share3
Basic earnings per ordinary share 52.9¢ 50.5¢ 4.8 138.1¢
Diluted earnings per ordinary share 52.3¢ 49.8¢ 5.0 136.1¢
1 The unaudited condensed consolidated income statement above is presented in reportable Euros for information purposes
only and has been prepared assuming the Euro is the presentation currency of the Group, whereby local currency results are
translated into Euros at actual monthly average exchange rates in the periods presented. Among other currencies, this
includes an average exchange rate of E1.1624 to the pound for the period ended 30 June 2017 (period ended 30 June 2016:
E1.2838; year ended 31 December 2016: E1.2234).
2 Margin points.
3 The basis of the calculations of the Group's earnings per share and headline earnings per share are set out in note 9 of
Appendix 1.
Appendix 4: Interim results for the six months ended 30 June 2017 in
reportable Japanese Yen1
Unaudited illustrative condensed consolidated interim income statement for the six months ended 30 June 2017
¥ billion Six months ended 30 June 2017 Six months ended 30 June 2016 +/(-)% Year ended 31 December 2016
Billings 3,806.1 4,040.8 (5.8) 8,090.4
Revenue 1,047.0 1,042.4 0.4 2,106.7
Direct costs (147.3) (150.6) 2.2 (292.2)
Net sales 899.7 891.8 0.9 1,814.5
Operating costs (797.3) (804.6) 0.9 (1,518.4)
Operating profit 102.4 87.2 17.4 296.1
Share of results of associates 8.5 2.6 226.9 7.3
Profit before interest and taxation 110.9 89.8 23.5 303.4
Finance income 6.4 7.2 (11.1) 12.2
Finance costs (18.9) (19.9) 5.0 (37.8)
Revaluation of financial instruments 11.9 (9.8) - (7.1)
Profit before taxation 110.3 67.3 63.9 270.7
Taxation (21.0) (22.3) 5.8 (56.2)
Profit for the period 89.3 45.0 98.4 214.5
Attributable to:
Equity holders of the parent 84.0 39.3 113.7 200.0
Non-controlling interests 5.3 5.7 7.0 14.5
89.3 45.0 98.4 214.5
Headline PBIT 124.6 120.6 3.3 311.6
Net sales margin 13.8% 13.5% 0.32 17.2%
Headline PBT 112.1 107.9 3.9 286.0
Reported earnings per share3
Basic earnings per ordinary share 66.3¥ 30.6¥ 116.7 156.5¥
Diluted earnings per ordinary share 65.6¥ 30.2¥ 117.2 154.3¥
Headline earnings per share3
Basic earnings per ordinary share 64.6¥ 62.1¥ 4.0 164.9¥
Diluted earnings per ordinary share 63.9¥ 61.3¥ 4.2 162.6¥
1 The unaudited condensed consolidated income statement above is presented in reportable Japanese Yen for information
purposes only and has been prepared assuming the Japanese Yen is the presentation currency of the Group, whereby local
currency results are translated into Japanese Yen at actual monthly average exchange rates in the periods presented. Among
other currencies, this includes an average exchange rate of ¥141.4563 to the pound for the period ended 30 June 2017
(period ended 30 June 2016: ¥159.8621; year ended 31 December 2016: ¥147.3525).
2 Margin points.
3 The basis of the calculations of the Group's earnings per share and headline earnings per share are set out in note 9 of
Appendix 1.
Glossary and basis of preparation
Average net debt and net debt
Average net debt is calculated as the average daily net borrowings of the Group. Net debt at a period end is calculated as
the sum of the net borrowings of the Group, derived from the cash ledgers and accounts in the balance sheet.
Billings and estimated net new billings
Billings comprise the gross amounts billed to clients in respect of commission-based/fee-based income together with the
total of other fees earned. Net new billings represent the estimated annualised impact on billings of new business gained
from both existing and new clients, net of existing client business lost. The estimated impact is based upon initial
assessments of the clients' marketing budgets, which may not necessarily result in actual billings of the same amount.
Constant currency
The Group uses US dollar-based, constant currency models to measure performance. These are calculated by applying budgeted
2017 exchange rates to local currency reported results for the current and prior year. This gives a US dollar-denominated
income statement which excludes any variances attributable to foreign exchange rate movements.
Free cash flow
Free cash flow is calculated as headline operating profit before non-cash charges for share-based incentive plans,
depreciation of property, plant and equipment and amortisation of other intangible assets, including dividends received
from associates, interest received, investment income received, proceeds from the issue of shares, and proceeds from the
disposal of property, plant and equipment, less corporation and overseas tax paid, interest and similar charges paid,
dividends paid to non-controlling interests in subsidiary undertakings, purchases of property, plant and equipment and
purchases of other intangible assets.
Net sales/Net sales margin
Net sales are revenue less direct costs. Net sales margin is calculated as headline PBIT (defined below) as a percentage of
net sales. The Group has previously used the terms gross margin and gross profit to refer to net sales.
Headline earnings
Headline PBT less headline tax charge and non-controlling interests.
Headline operating profit/Headline PBIT
Profit before finance income/costs and revaluation of financial instruments, taxation, gains/losses on disposal of
investments and subsidiaries, investment write-downs, goodwill impairment and other goodwill write-downs, amortisation and
impairment of acquired intangible assets, Group restructuring costs, share of exceptional gains/losses of associates and
gains/losses on remeasurement of equity interests arising from a change in scope of ownership.
Headline PBT
Profit before taxation, gains/losses on disposal of investments and subsidiaries, investment write-downs, goodwill
impairment and other goodwill write-downs, amortisation and impairment of acquired intangible assets, Group restructuring
costs, share of exceptional gains/losses of associates, gains/losses arising from the revaluation of financial instruments,
and gains/losses on remeasurement of equity interests arising from a change in scope of ownership.
Headline tax charge
Taxation excluding tax charge/deferred tax relating to gains on disposal of investments and subsidiaries, deferred tax
impact of the amortisation of acquired intangible assets and other goodwill items and tax credit/charge relating to
restructuring costs.
Operating margin
Headline operating profit as a percentage of net sales.
Pro forma ('like-for-like')
Pro forma comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions
from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include
or exclude the results of acquisitions and disposals for the commensurate period in the prior year. The Group uses the
terms 'pro forma' and 'like-for-like' interchangeably.
1 Percentage change in reported sterling
2 Percentage change at constant currency rates
3 Headline earnings before interest, tax, depreciation and amortisation
4 Headline profit before interest and tax
5 Headline profit before interest and tax, as a percentage of net sales
6 Margin points
7 Diluted earnings per share based on headline earnings
8 Diluted earnings per share based on reported earnings
9 Return on equity is headline diluted EPS divided by equity share owners funds per share
10 Percentage change at constant currency exchange rates
11 Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals
12 Short and long-term incentives and the cost of share-based incentives
13 Excludes direct costs, goodwill impairment, amortisation and impairment of acquired intangibles, investment gains and
write-downs, gains/losses on remeasurement of equity interests arising from a change in scope of ownership and
restructuring costs
14 Percentage change at constant currency rates
15 Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals
16 Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
17 Brazil, Russia, India and China (accounting for over $1.2 billion revenue, including associates, in the first half)
18 Bangladesh, Egypt, Indonesia, South Korea, Mexico, Nigeria, Pakistan, Philippines, Vietnam and Turkey - the Group has
no operations in Iran (accounting for over $500 million revenue, including associates, in the first half)
19 Percentage change at constant currency rates
20 Like-for-like growth at constant currency exchange rates and excluding the effects of acquisitions and disposals
21 Advertising, Media Investment Management
22 Data Investment Management
23 Public Relations & Public Affairs
24 Branding & Identity, Healthcare and Specialist Communications
25 Re-classification of associate business now split between advertising and branding & identity, healthcare and
specialist communications
This information is provided by RNS
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