EX-99.1 2 d790538dex991.htm EX-99.1 EX-99.1

Exhibit 1

 

LOGO

Changes to business sector reporting structure

Released : 05 Aug 2019 07:00

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 realigned 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

 

  £ million    2018      reported      constant      LFL  

  Global Integrated Agencies

      4,756        -2.1%        3.0%        2.2%   

  Data Inv. Mgt.1

      1,226        -5.6%        -1.6%        -1.9%   

  Public Relations

      454        -0.2%        5.8%        5.5%   

  Specialist Agencies

      1,057        1.5%        6.6%        1.7%   

  Total Group

      7,493        -2.1%        2.9%        1.6%   

 

    

OLD SECTORS

 

  £ million    2018      reported      constant      LFL  

  AMIM

      3,441        -3.6%        1.1%        2.2%   

  Data Inv. Mgt.

      1,236        -5.9%        -1.9%        -2.2%   

  PR & PA

      581        -2.7%        3.0%        3.7%   

  BC, HW & SC

      2,235        3.0%        8.7%        2.4%   

  Total Group

      7,493        -2.1%        2.9%        1.6%   
 

  FULL YEAR

  NEW SECTORS

 

  £ million    2018      reported      constant      LFL  

Global Integrated Agencies

      9,930        -1.0%        1.9%        1.4%   

Data Inv. Mgt.1

      2,561        -4.3%        -1.7%        -1.7%  

Public Relations

      932        1.8%        4.7%        4.0%  

Specialist Agencies

      2,179        -0.2%        2.4%        -0.1%  

Total Group

      15,602        -1.3%        1.5%        0.8%  

    

OLD SECTORS

 

  £ million    2018      reported      constant      LFL  

AMIM

      7,132        -3.2%        -0.4%        1.0%   

Data Inv. Mgt.

      2,582        -4.5%        -1.8%        -2.0%  

PR & PA

      1,211        0.6%        3.4%        3.1%  

BC, HW & SC

      4,677        3.3%        6.3%        1.5%  

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

 

  £ million    2018      reported      constant      LFL  

Global Integrated Agencies

      3,844        -4.5%        0.5%        0.2%   

Data Inv. Mgt.1

      940        -4.8%        -0.5%        -1.1%  

Public Relations

      430        0.1%        6.0%        5.9%  

Specialist Agencies

      935        0.2%        5.4%        0.1%  

Total Group

      6,149        -3.6%        1.4%        0.3%  

    

OLD SECTORS

 

  £ million    2018      reported      constant      LFL  

AMIM

      2,639        -7.3%        -2.8%        -0.8%   

Data Inv. Mgt.

      946        -5.1%        -0.8%        -1.5%  

PR & PA

      551        -3.0%        2.6%        3.5%  

BC, HW & SC

      2,013        2.5%        8.4%        1.9%  

Total Group

      6,149        -3.6%        1.4%        0.3%  
 

 

  FULL YEAR

  NEW SECTORS

 

  £ million    2018      reported      constant      LFL  

Global Integrated Agencies

      8,071        -2.9%        -0.1%        -0.3%   

Data Inv. Mgt.1

      1,953        -4.1%        -1.2%        -1.5%  

Public Relations

      880        1.8%        4.7%        4.0%  

Specialist Agencies

      1,923        -1.6%        1.2%        -1.5%  

Total Group

      12,827        -2.6%        0.2%        -0.4%  

    

OLD SECTORS

 

  £ million    2018      reported      constant      LFL  

AMIM

      5,530        -6.1%        -3.3%        -1.2%   

Data Inv. Mgt.

      1,966        -4.2%        -1.3%        -1.8%  

PR & PA

      1,136        -0.4%        2.5%        2.6%  

BC, HW & SC

      4,195        2.6%        5.6%        0.6%  

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

 

  £ million   

Revenue
less pass-

through
costs

      Headline
operating
profit2		      Headline
operating
profit
margin		  

Global Integrated Agencies

      3,844        485        12.6%   

Data Inv. Mgt.1

      940        110        11.7%  

Public Relations

      430        69        16.0%  

Specialist Agencies

      935        119        12.7%  

Total Group

      6,149        783        12.7%  

    

OLD SECTORS

 

  £ million   

Revenue

less pass-

through
costs

      Headline
operating
profit2		      Headline
operating
profit
margin		  

AMIM

      2,639        370        14.0%   

Data Inv. Mgt.

      946        106        11.2%  

PR & PA

      551        84        15.3%  

BC, HW & SC

      2,013        223        11.0%  

Total Group

      6,149        783        12.7%  
 

  FULL YEAR    

  NEW SECTORS    

  £ million    Revenue      Headline      Headline   
     less pass-      operating      operating   
     through      profit2      profit   
      costs              margin   

Global Integrated Agencies

      8,071        1,239        15.4%   

Data Inv. Mgt.1

      1,953        296        15.2%   

Public Relations

      880        141        16.0%   

Specialist Agencies

      1,923        286        14.9%   

Total Group

      12,827        1,962        15.3%   

    

OLD SECTORS

 

 

      
 £ million    Revenue      Headline      Headline   
     less pass-      operating      operating   
     through      profit2      profit   
      costs              margin   

AMIM

      5,530        947        17.1%   

Data Inv. Mgt.

      1,966        288        14.7%   

PR & PA

      1,136        178        15.7%   

BC, HW & SC

      4,195        549        13.1%   

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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