logo
Plus   Neg
Share
Email

WPP H1 Headline Profit Declines; LFL Revenue Less Pass-through Costs Down 2.0%

WPP Group plc (WPP.L,WPPGY) said its first-half reported profit before tax declined 44% driven primarily by a significant prior year first half exceptional gain that has not been repeated and a charge on the revaluation of financial instruments versus a credit in 2018. The company reiterated its 2019 guidance.

For the first-half, reported profit before tax was 478 million pounds compared to 846 million pounds, prior year. Reported earnings per share was 24.8 pence compared to 53.4 pence. Headline profit before tax was down 17.6% to 605 million pounds from 735 million pounds, last year, and down 18.4% in constant currency. Headline earnings per share was 34.2 pence compared to 42.6 pence. Headline operating margin was 11.9%, down 1.2 margin points like-for-like, for the period.

First-half reported revenue was up 1.6% at 7.6 billion pounds. Revenue on a constant currency basis was flat compared with last year. Like-for-like revenue less pass-through costs were down 2.0%, for the period. Reported billings were down 0.5% at 26.5 billion pounds, and down 2.0% in constant currency.

For 2019, the Group continues to project: like-for-like revenue less pass-through costs down 1.5% to 2.0%; and headline operating margin to revenue less pass-through costs down around 1.0 margin point on a constant currency basis.

The Board declared an interim dividend of 22.7 pence per share, the same as last year. The record date for the interim dividend is 4 October 2019, payable on 4 November 2019.

Also, WPP appointed Jasmine Whitbread to its Board as a non-executive director, effective from 1 September 2019. She is currently Chief Executive of London First and a non-executive director of Standard Chartered plc and BT Group plc.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
U.S. President Donald Trump said he discussed with Apple Inc.'s CEO Tim Cook about the impact of the U.S. tariffs on goods imported from China as well as the competition for Apple from South Korea's Samsung Electronics Co. Cook reportedly warned Trump that the tariffs on Chinese imports would hurt Apple's business as the tech giant relies heavily on manufacturing in China. Just Egg, a plant-based egg alternative, will be available in 2,100 stores owned by grocery chain Kroger Co. later this month. The product launch comes as plant-based meat and egg alternatives gain traction in the country. Just Egg, a product of California-based food technology company Just Inc., will be available at Kroger-owned stores, including Kroger, Fred Meyer and Ralphs. Boeing has delivered the first 787-10 Dreamliner to Vietnam Airlines, the flag carrier of Vietnam, as part of the eight 787-10 Dreamliner airplanes to be delivered on lease through Air Lease. Vietnam Airlines said the 787-10 Dreamliner, claimed by Boeing to be the most fuel-efficient twin-aisle airplane in the industry, will help it raise the customer experience on the Hanoi to Ho Chi Minh route.
Follow RTT