WPP confirmed as world’s top marketing holding company with billings up 12.6% to US$65 billion

WPP, the holding company of ad agency networks including Ogilvy, JWT, Y&R and Grey, has announced the unaudited preliminary results for the year ended 31 December 2010, the Group’s twenty-fifth year. 

The results confirm recent announcements that WPP – which Sir Martin Sorrell (left) started in 1985  – is now the world’s biggest advertising and marketing services holding company, ahead of former #1 Omnicom. 

The following is from the WPP release overnight: Following a brutal 2009, when the post-Lehman financial world did not come to an end, as some had feared, 2010 was a year of significant recovery, as clients re-focused on top-line sales growth and expansion, particularly in faster-growth geographic markets, as well as continued cost containment in the slower-growth markets of the United States and Western Europe. The recovery from the dark days of 13/14 September 2008 has been remarkable.

Reportable revenue was up 7.4% to £9.331 billion. Revenue, including 100% of associates, was £11.643 billion. On a constant currency basis, revenue was up 5.6%, primarily reflecting the comparative weakness of the pound sterling against most currencies, other than the Euro. As a number of our competitors report in US dollars and the Euro and inter-currency comparisons are difficult to make, Appendices 2 and 3 show WPP’s preliminary results in reportable US dollars and Euros respectively. This shows, for example, that US dollar reportable revenues were up 6.0% at $14.4 billion, which compares with the $12.5 billion of our closest competitor and that Euro reportable revenues were up 11.7% at €10.9 billion. 

Headline earnings before interest, tax, depreciation and amortisation (“Headline EBITDA”) were $2.218 billion compared to $1.713 billion for our nearest competitor.

Like-for-like revenues, excluding the impact of acquisitions and on a constant currency basis, were up 5.3%, reflecting a continuation of the sequential improvement seen in the first three quarters, into the final quarter, with like-for-like growth of 8.5%, the fastest rate of quarterly growth seen since the fourth quarter of 2000. December saw the first monthly double-digit growth rate since January 2001.

KEY POINTS:

Billings up over 12% to £42.7 billion 

Second interim dividend up 15% at 11.82p per share