WPP Group releases preliminary global results for 2013 – revenues up 6.2% at over £11 billion
WPP Group – the global holding company of agency networks including JWT, Ogilvy, Y&R and Grey and led by CEO Sir Martin Sorrell – has released its preliminary results for 2013.
The Highlights:
– Billings up 4.1% at over £46 billion
– Revenues up 6.2% at over £11 billion
– Like-for-like revenue up 3.5%, with second half up 4.6%
– Operating margin at historical high of 15.1%, up 0.3 margin points, up 0.5 margin points in constant currency and 0.6 margin points like-for-like
– Gross margin or net sales margin at historical high of 16.5%, up 0.4 margin points
– Impact of exchange rates in second half reduced reported margin
– Headline profit before interest and tax £1.662 billion, up over 8%
– Headline profit before tax £1.458 billion, up almost 11%
– Profit before tax £1.296 billion, up almost 19%
– Headline diluted earnings per share of 80.8p, up over 10%
– Dividends per share of 34.21p, up 20%, and pay-out ratio of 42% versus 39% last year, with a targeted dividend pay-out ratio of 45% in 2014
– Share buy-back target raised to 2-3% of share capital against current 1%
– Strategic targets raised for each of faster growth markets and new media sectors to 40-45% of revenues from 35-40% over the next five years
– Constant currency net debt at 31 December 2013 down £634 million on same date in 2012, with average net debt in 2013 down £244 million over 2012
– Good start to 2014 with January like-for-like revenues up 5.7% and gross margin or net sales up 4.1% .
7 Comments
How much clients are paying for their advertising.
Pay rises for everyone!
Billings up 4.2, revenue up 6.1
Who got squeezed?
I’ll tell you who got squeezed. They’re focusing on “improving staff costs/revenue ratio”. Have been for some time. So that large labour force Sorrell is so proud of? They’re getting squeezed. Not clients.
Nice turtleneck
Great news for shareholders.
Not so for everyone in the sausage factory.
So that’s why they’ve cancelled the free client soft-drink products in the agency fridge.
Thanks.