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WPP
Group Public Limited Company
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Place de cotation: LONDON
STOCK EXCHANGE NASDAQ
Indice: FTSE100
WPP is one of the world's
largest communications services groups, employing 91,000 people* working
in over 2,000 offices in 106 countries.
WPP Group est la 1er groupe
de communication mondial.
- publicité et
médias
- gestion de l'image,
communication spécialisée et marketing relationnel
- conseil et études
de marché
- relations publiques
(3%).
http://www.wpp.com/
WPP
QUARTERLY TRADING UPDATE
CONSTANT
CURRENCY REVENUES UP OVER 6%
LIKE-FOR-LIKE
REVENUES UP OVER 4%
FIRST
QUARTER OPERATING MARGIN IN LINE WITH BUDGET
FULL
YEAR OPERATING MARGIN FORECAST TO INCREASE IN
LINE
WITH TARGET OF 15%
Current
Trading
Reportable
revenues were £1.366 billion, down 0.7%, principally reflecting the
11% decline in the US dollar against sterling. In constant currencies,
first
quarter
revenues were up 6.3%. On a like-for-like basis, excluding acquisitions
and currency, revenues were up 4.3%. On the same basis,
gross
margin1 was up 4.6%. This continues the mid-single digit organic growth
rate of the last two and a half years, which began with the second-half
of
2004 and continued through 2005 and 2006. This also reflects the continued
strong economic environment across the world. Some softness in
the
United States in the last few months, relative to the strong last half
of 2006, has been largely counter-balanced by improvements in Western
Europe.
As
shown in the appendix, on a constant currency basis, Asia Pacific, Latin
America, Africa and the Middle East, continue to be the fastest growing
region,
with revenues up almost 12%. North America remains strong with revenues
up over 6%. Continental Europe was up over 4% with Western
Continental
Europe continuing the improvement seen in the second half of 2006. Although
the United Kingdom remained the slowest growing region,
revenues
were up over 2% and gross margin up over 3%, reflecting the significance
of market research revenues in the United Kingdom. As more
market
research is executed on the web, both revenue and direct costs are reduced.
As a result, gross margin is probably the better measure of
performance.
WPP
announces 2006 preliminary results 23 February, 2007 
WPP
2006 PRELIMINARY RESULTS
Billings
up 13% to £30.1 billion
Reported
revenue up almost 10% to £5.9 billion
Like-for-like
revenue up 5.4%
Headline
operating margin up 0.5 margin points to 14.5%
EBITDA
crosses £1 billion for first time
Headline
operating profit before interest and tax up almost 14% to £859 million
Headline
Profit before tax up over 14% to £766 million
Profit
before tax up over 15% to £682 million
Diluted
headline earnings per share up almost 17% at 42.0p
Final
dividend up 20% to 7.61p per share
•
Billings up 13.0% to £30.141 billion.
•
Revenue up 9.9% to £5.908 billion.
•
Like-for-like revenue up 5.4%.
•
Second half like-for-like revenue growth accelerates to 5.7% and quarter
four to 7.2%.
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Headline operating profits before interest and tax up 13.8% to £859.0
million from £754.8 million.
•
Operating margin up 0.5 margin points to 14.5% from 14.0%.
•
Headline profits before tax up 14.5% to £766.3 million from £669.0
million.
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Profit before tax up 15.2% to £682.0 million from £592.0 million.
•
Diluted headline earnings per share up 16.7% to 42.0p from 36.0p.
•
Reported diluted earnings per share up 18.5% to 35.2p from 29.7p.
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Final dividend up 20% to 7.61p per share making a total for the year of
11.21p up 20% over 2005.
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Average net debt up £121 million to £1,214 million from £1,093
million (at 2006 exchange rates).
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Estimated net new billings of over £3.562 billion ($6.411 billion).
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Operating margin targets of 15.5% and 16.0% set for 2008 and 2009.
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Target percentage for rolling share-buyback programme increased to 4-5%
of share capital for 2007 and 2008
In
this press release not all of the figures and ratios used are readily available
from the unaudited preliminary results included in Appendix I. Where
required, details of how these have been arrived at are shown in the Appendix.
Summary
of results
The
Board of WPP Group plc (“WPP”) announces the unaudited preliminary results
for the year ended 31 December 2006, the Group’s twenty-first year.
These record results again reflect the continued steady strength of the
world economy positively impacting almost all disciplines and geographies
and the strength of the Group’s operating brands and franchise.
Billings
were up 13.0% at £30.141 billion, around $55 billion.
Reportable
revenue was up 9.9% to £5.908 billion. Revenue, including 100% of
associates, is estimated to total over £7.010 billion. On a
constant currency basis, revenue was up 10.9% and gross margin up 10.3%.
Like-for-like revenues, excluding the impact of acquisitions and on a constant
currency basis, were up 5.4%. On the same basis, gross margin was
up 5.7%. Like-for-like revenues were up 5.0% in the first half of
2006 and up 5.7% in the second half, continuing the strong organic growth
of 5.5% in 2005, with the fourth quarter of 2006, accelerating to 7.2%.
The fourth quarter was the Company’s first $3 billion revenue quarter.
Headline
earnings before interest, depreciation and amortisation (“EBITDA”) was
up 14.2% to £1.002 billion and up 16.0% in constant currencies.
Headline operating profit was up 13.8% to £859 million and up 15.7%
in constant currencies.
Reported
operating costs together with direct costs (but excluding goodwill impairment,
amortisation of acquired intangibles and profits on disposal of fixed asset
investments), rose by 9.3% and by 10.1% in constant currency. Like-for-like
total operating and direct costs rose 4.3%. Reported staff costs,
excluding incentives (which includes the cost of share-based compensation),
were up 9.1%. Incentive payments (including the cost of share-based compensation)
totalled £246.9 million (£227.6 million in 2005), an increase
of 8.4%, which represents 23.1% (24.0% in 2005) of headline operating profit
before bonuses, taxes and income from associates. Before these incentive
payments, operating margins increased by 0.4 margin points to 18.7% from
18.3%. On a reported basis, the Group’s staff cost to revenue ratio
improved 0.5 margin points to 58.8% compared with 59.3% in 2005.
WPP
Interim Results 2005  |
