REG - WPP PLC - Changes to business sector reporting structure

WPPAnnouncement

05/08/2019 07:05

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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