TIDMWPP
RNS Number : 6380B
WPP PLC
30 October 2009
?
+---------------------------------------+--------------------------------------------+
| FOR IMMEDIATE RELEASE | 30 October 2009 |
+---------------------------------------+--------------------------------------------+
WPP
QUARTERLY TRADING UPDATE
THIRD QUARTER REPORTED REVENUES UP ALMOST 17%
THIRD QUARTER LIKE-FOR-LIKE REVENUES DOWN UNDER 9%
THIRD QUARTER LIKE-FOR-LIKE GROSS MARGIN DOWN 8%
REPORTED REVENUES UP OVER 24% IN FIRST NINE MONTHS
LIKE-FOR-LIKE REVENUES DOWN OVER 8% IN FIRST NINE MONTHS
LIKE-FOR-LIKE GROSS MARGIN DOWN 8% IN FIRST NINE MONTHS
ON COURSE TO ACHIEVE SECOND HALF OPERATING MARGIN IN LINE WITH LAST YEAR
Revenue Growth - Third Quarter
In the third quarter, as shown in appendix 1, reported revenues rose by 16.7% to
GBP2.007 billion. Revenues, in constant currencies, were up 6.7%, reflecting
both the acquisition of Taylor Nelson Sofres plc ("TNS") and the weakness of the
pound sterling against the US dollar and Euro. Excluding the impact of
acquisitions and currency fluctuations, like-for-like revenue growth was down
8.7%, a slight increase on the first half's decline of 8.3%, but well below the
second quarter's decline of 10.5%. Like-for-like gross margin, a better measure
of competitive performance, was down less at -8.3%. July, August and September
all showed "less worse" revenue growth against April, May and June. Clearly,
overall conditions are "less worse," reflecting no Armageddon and the cycling of
easier comparatives.
Again, as shown in appendix 1, the geographical pattern of revenue growth varied
significantly in the third quarter. There was relative improvement in the United
States, with like-for-like growth of -6.1%, compared with -9.4% in the first
quarter and -11.3% in the second quarter. There was also some relative
improvement in Western Continental Europe and Asia Pacific, but the United
Kingdom, the Middle East and Africa and Latin America saw a slight softening
compared with the second quarter. Western Continental Europe improved slightly,
down 12.5% in the third quarter, compared with -13.0% in quarter two and Asia
Pacific also improved, down 10.7% compared with -12.1% in the second quarter.
Like-for-like growth in the United Kingdom was down 9.0% and Latin America down
1.2%.
By communications services sector, the pattern of revenue growth also varied
significantly, although in a similar way to the first half. All services sectors
saw an improvement compared with the second quarter. On a like-for-like basis,
branding & identity, healthcare and specialist communications (including direct,
internet and interactive) was least affected, with the Group's healthcare
businesses continuing the improvement seen in the second quarter. There was
continued pressure on advertising and media investment management in the third
quarter, reflecting reductions in clients' traditional media spending and media
deflation, although the Group's advertising business improved relatively. Public
relations and public affairs also saw relative improvement in the third quarter,
with like-for-like revenues down 8.5% compared with -9.7% in the second quarter.
Consumer insight saw a marked improvement in like-for-like growth with revenues
down 10.0%, compared with -13.4% in the second quarter. Consumer insight gross
margin performed better, down 7.4% in the third quarter against -11.1% in the
second.
Revenue Growth - Nine Months
In the first nine months of 2009, reported revenues were GBP6.296 billion, up
24.5%. In constant currencies, revenues were up 8.0%, reflecting both the
acquisition of TNS and the weakness of the pound sterling against the US dollar
and Euro. On a like-for-like basis, excluding the impact of acquisitions and
currency fluctuations, revenues were down 8.4%. Like-for-like gross margin was
down less at -8.0%.
As shown in appendix 2, on a constant currency basis, the pattern of revenue
growth by region varied significantly in the first nine months. Overall revenue
growth was 6.7% in the third quarter, similar to the second quarter, but down on
the first half growth of 8.6%. As mentioned above, in the first nine months,
like-for-like revenues were down 8.4%, similar to the first half. Asia Pacific,
Latin America, Africa and the Middle East and Central and Eastern Europe,
continues to be the least affected region, although there was some softening in
the third quarter, in the Middle East and Central and Eastern Europe. Latin
America and Africa, as in the first half, are the only regions or continents
showing like-for-like growth, but even here there was some softening, compared
with the first half. Western Continental Europe continues to be the worst
affected region followed by the United States and the United Kingdom. However,
in the third quarter, the United States showed a marked improvement with
revenues down 6.1%, which is the best quarterly performance so far this year.
There was a slight softening in the United Kingdom compared with the second
quarter, with like-for-like revenue down 9.0%, compared with -8.2% in the second
quarter.
By communications services sector, although the pattern of growth varied, it
remained similar to the first half. On a like-for-like basis the Group's
branding & identity, healthcare and specialist communications businesses
(including direct, internet and interactive) was least affected, down 6.6%,
followed by public relations and public affairs and advertising and media
investment management, down 8.3% and 8.5% respectively. Consumer insight
revenues remained challenged at -10.2%, particularly in Western Continental
Europe and Asia Pacific, although like-for-like gross margin was down
significantly less at -7.8%.
Additional information is provided in appendix 3 and 4, showing the third
quarter and nine months revenue and revenue growth in reportable US dollars, to
allow for better comparison with a number of our competitors, which report in
that currency.
New Business
Net new business billings of GBP730 million ($1.131 billion) were won during the
third quarter. Net new business billings won in the first nine months of 2009
were GBP1.938 billion ($3.004 billion). The Group continues to benefit from
consolidation trends in the industry, winning several large assignments from
existing and new clients and ranking second or third in the three new business
league tables.
Current Trading
At the half year, headline operating margins were down 5.6 margin points to
8.0%, compared with 13.6% in the first half of last year. In the third quarter,
as anticipated, there was a significant turnaround, with headline operating
margins on a like-for-like basis, down just 0.7 margin points compared with last
year (adjusted for the impact of TNS), all of which is accounted for by
additional severance.
Headcount has continued to decline in the third quarter, as our businesses
balance revenues and costs more effectively, with the like-for-like number of
people in the Group (excluding associates) at 30 September at 101,333, compared
with 112,565 at 31 December 2008, a decrease of 10.0%. As outlined in the
Group's half year statement, the second half is forecast to show a marked
improvement in profitability, both absolutely and in terms of maintaining second
half margins at prior year levels (again adjusted for TNS). Based on the latest
third quarter revised forecast, the Group is still on course to achieve this
margin target for the second half of 2009.
There is little doubt that consumer and corporate confidence has recovered
somewhat from the panic levels of the fourth quarter of 2008 and first quarter
of 2009. Confidence, however, remains fragile amongst consumers, because of the
shadow of high unemployment levels and amongst corporates, because Armageddon
and Apocalypse now were barely avoided in September 2008. Whilst the hearts of
CEOs and CMOs are stronger and their minds clearer, increased confidence is
still not transferring to their cheque-writing hands. Brand investment is still
in check, particularly in the West, despite most statistical evidence pointing
to the opposite of this current conventional wisdom. Companies that invest in
brands during recessions, emerge with higher sales trajectories, profits and
profit margins in better times. As many clients' earnings results show,
increased or maintained profits or margins are being achieved by cutting costs,
not through increasing revenues.
As the Company's revenue growth figures for the third quarter indicate, things
are certainly "less worse" than the second quarter and July, August and
September, have all shown improvement over April, May and June. And so they
should, given the massive fiscal and monetary stimuli pumped into the world's
economy, since Lehman collapsed and given the fact that, Armageddon having been
avoided, we are cycling easier comparatives.
This sequential quarterly improvement should continue into the fourth quarter of
2009 and into 2010, for the same reasons, although the real test may come when
governments and independent central banks decide to reduce or withdraw fiscal
and monetary support to avoid higher interest rates and inflation. Like the
withdrawal of the "Cash for Clunkers" programmes in the USA, this may have the
impact of reducing demand dramatically - in the case of the US automobile and
truck industry, from an annualised level of 14 million units to 10 million
units. Conversely, if for political reasons, they leave excessive stimulation in
place, this may result in significant increases in interest rates and inflation
and the need for further correction.
Although we still have not reviewed our budgets for 2010, "even-Stevens" for
budgeted revenues still seems as good a bet now, as it did two months ago, in
our first half results statement.
Also a "LUV"-shaped world economic recovery seems the most acute description in
the alphabet soup debate on the shape of the current economic cycle. Stella
Dawson, Treasury Correspondent of Thomson Reuters, points to an L-shaped
recovery for Western Europe, a U-shaped one for North America and a V-shaped one
for the BRICs and Next 11 - all of which bodes well for our current and
long-term strategic focus on the new markets of the BRICs and Next 11, the new
media and consumer insights.
Balance Sheet and Cash Flow
Average net debt in the first nine months of 2009 was GBP3.482 billion, compared
to GBP2.280 billion in the comparable period last year, at 2009 average exchange
rates, an increase of GBP1.202 billion. Net debt at 30 September 2009 was
GBP3.413 billion, against GBP2.250 billion at the same time last year, at 2009
average exchange rates, an increase of GBP1.163 billion. These figures reflect
the cash acquisition cost and debt acquired of TNS of GBP1.3 billion and other
smaller acquisitions and earnout payments. Your Board continues to examine ways
of deploying its EBITDA, (of over GBP1.2 billion or almost $1.9 billion for the
preceding twelve months) and substantial free cash flow (of almost GBP550
million or approximately $850 million per annum, also for the previous twelve
months), to enhance share owner value. The cost of the acquisition of TNS was
funded principally by debt and at the time of the transaction it was announced,
that for the following two years, acquisitions would be limited up to GBP100
million per annum, the Group's share buy-back programme would be targeted up to
1% per annum and dividend growth at up to 15% per annum, using surplus cash
generated to reduce debt. In the first nine months, 2.4 million ordinary
shares, equivalent to 0.2% of the share capital, were purchased at an average
price of GBP3.92 per share and total cost of GBP9.5 million. All of these shares
were purchased in the market and held in treasury.
In the first nine months of 2009, the Group continued to make small-sized
acquisitions or investments in high growth geographical or functional areas. In
the first nine months of this year, acquisitions and increased equity stakes
have been focused on advertising and media investment management in Italy,
Portugal, South Africa and Australia; on consumer insight in the United States,
the United Kingdom, Russia and China; on public relations and public affairs in
Poland and Vietnam; on direct, internet and interactive in the United States,
the United Kingdom, France and Hong Kong and on healthcare in France and China.
Future Objectives
Despite the current environment, the Group continues to concentrate on its
long-term targets and objectives of improving operating profits by 10-15%;
improving operating margins by half to one margin point per annum or more
depending on revenue growth; improving staff cost to revenue or gross margin
ratios by 0.6 margin points per annum or more depending on revenue growth;
converting 25-33% of incremental revenue to profit; growing revenue faster than
industry averages and encouraging co-operation among Group companies.
For further information:
+-------------------+--+-------------------------+
| Sir Martin | )| |
| Sorrell | | |
+-------------------+--+-------------------------+
| Paul Richardson | )| + 44 207-408-2204 |
+-------------------+--+-------------------------+
| Feona McEwan | )| |
| | | |
+-------------------+--+-------------------------+
| Fran Butera | | + 1 212-632-2235 |
+-------------------+--+-------------------------+
www.wppinvestor.com
This announcement has been filed at the Company Announcements Office of the
London Stock Exchange and is being distributed to all owners of Ordinary shares
and American Depository Receipts. Copies are available to the public at the
Company's registered office.
The following cautionary statement is included for safe harbour purposes in
connection with the Private Securities Litigation Reform Act of 1995 introduced
in the United States of America. This announcement may contain forward-looking
statements within the meaning of the US federal securities laws. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially including adjustments arising from the annual audit
by management and the Company's independent auditors. For further information on
factors which could impact the Company and the statements contained herein,
please refer to public filings by the Company with the Securities and Exchange
Commission. The statements in this announcement should be considered in light of
these risks and uncertainties.
Appendix 1: Revenue and revenue growth by region and communications services
sector
3 months ended 30 September 2009
+---------------------+-------------+------------+------------+-------------+---------------+
| | Revenue | Revenue | Revenue | Constant | Like-for-like |
+---------------------+-------------+------------+------------+-------------+---------------+
| | 2009 | 2008 | Growth | Currency | Growth² |
+---------------------+-------------+------------+------------+-------------+---------------+
| Region | GBPm | GBPm | Reported | Growth¹ | |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | 09/08 | 09/08 | 09/08 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | % | % | % |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| North America | 704.5 | 596.9 | 18.0 | 3.0 | -6.3 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| United Kingdom | 244.3 | 224.0 | 9.1 | 9.1 | -9.0 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Western Continental | | | | | |
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Europe | 506.4 | 405.7 | 24.8 | 14.6 | -12.5 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Asia Pacific, Latin | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| America, Africa & | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Middle East and | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Central & Eastern | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Europe | 552.0 | 492.7 | 12.0 | 4.4 | -8.3 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Total Group | 2,007.2 | 1,719.3 | 16.7 | 6.7 | -8.7³ |
+---------------------+-------------+------------+------------+-------------+---------------+
+---------------------+-------------+------------+------------+-------------+---------------+
| Communications | Revenue | Revenue | Revenue | Constant | Like-for-like |
+---------------------+-------------+------------+------------+-------------+---------------+
| Services | 2009 | 2008 | Growth | Currency | Growth² |
+---------------------+-------------+------------+------------+-------------+---------------+
| Sector | GBPm | GBPm | Reported | Growth¹ | |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | 09/08 | 09/08 | 09/08 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | % | % | % |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Advertising & Media | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Investment | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Management | 765.6 | 785.3 | -2.5 | -10.3 | -9.8 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Consumer Insight | 529.5 | 246.7 | 114.6 | 96.9 | -10.0 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Public Relations & | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Public Affairs | 189.0 | 184.2 | 2.6 | -7.7 | -8.5 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Branding & | | | | | |
| Identity, | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Healthcare and | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Specialist | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Communications | 523.1 | 503.1 | 4.0 | -5.2 | -5.9 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Total Group | 2,007.2 | 1,719.3 | 16.7 | 6.7 | -8.7³ |
+---------------------+-------------+------------+------------+-------------+---------------+
1. Constant currency revenue growth excludes the effect of currency movements.
2. Like-for-like growth excludes the impact of currency movements and the impact of
acquisitions
3. Gross margin -8.3%
Appendix 2: Revenue and revenue growth by region and communications services
sector
9 months ended 30 September 2009
+---------------------+-------------+------------+------------+-------------+---------------+
| | Revenue | Revenue | Revenue | Constant | Like-for-like |
+---------------------+-------------+------------+------------+-------------+---------------+
| | 2009 | 2008 | Growth | Currency | Growth² |
+---------------------+-------------+------------+------------+-------------+---------------+
| Region | GBPm | GBPm | Reported | Growth¹ | |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | 09/08 | 09/08 | 09/08 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | % | % | % |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| North America | 2,246.7 | 1,786.7 | 25.7 | 0.2 | -8.9 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| United Kingdom | 753.6 | 674.2 | 11.8 | 11.8 | -6.6 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Western Continental | | | | | |
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Europe | 1,637.7 | 1,238.1 | 32.3 | 18.0 | -11.2 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Asia Pacific, Latin | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| America, Africa & | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Middle East and | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Central & Eastern | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Europe | 1,657.9 | 1,359.5 | 21.9 | 9.0 | -6.0 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Total Group | 6,295.9 | 5,058.5 | 24.5 | 8.0 | -8.4³ |
+---------------------+-------------+------------+------------+-------------+---------------+
+---------------------+-------------+------------+------------+-------------+---------------+
| Communications | Revenue | Revenue | Revenue | Constant | Like-for-like |
+---------------------+-------------+------------+------------+-------------+---------------+
| Services | 2009 | 2008 | Growth | Currency | Growth² |
+---------------------+-------------+------------+------------+-------------+---------------+
| Sector | GBPm | GBPm | Reported | Growth¹ | |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | 09/08 | 09/08 | 09/08 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | % | % | % |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Advertising & Media | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Investment | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Management | 2,409.8 | 2,306.6 | 4.5 | -8.5 | -8.5 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Consumer Insight | 1,653.4 | 733.2 | 125.5 | 97.2 | -10.2 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Public Relations & | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Public Affairs | 592.5 | 540.3 | 9.7 | -7.2 | -8.3 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Branding & | | | | | |
| Identity, | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Healthcare and | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Specialist | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Communications | 1,640.2 | 1,478.4 | 10.9 | -4.7 | -6.6 |
+---------------------+-------------+------------+------------+-------------+---------------+
| | | | | | |
+---------------------+-------------+------------+------------+-------------+---------------+
| Total Group | 6,295.9 | 5,058.5 | 24.5 | 8.0 | -8.4³ |
+---------------------+-------------+------------+------------+-------------+---------------+
1. Constant currency revenue growth excludes the effect of currency movements.
2. Like-for-like growth excludes the impact of currency movements and the impact of
acquisitions
3. Gross margin -8.0%
Appendix 3: Revenue and revenue growth by region and communications services
sector in Reportable US Dollars
3 months ended 30 September 2009
+----------------------------------------+-------------+------------+------------+
| | Revenue | Revenue | Revenue |
+----------------------------------------+-------------+------------+------------+
| | 2009 | 2008 | Growth |
+----------------------------------------+-------------+------------+------------+
| Region | $m | $m | Reported |
+----------------------------------------+-------------+------------+------------+
| | | | 09/08 |
+----------------------------------------+-------------+------------+------------+
| | | | % |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| North America | 1,156.2 | 1,126.2 | 2.7 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| United Kingdom | 400.8 | 423.1 | -5.3 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Western Continental | | | |
+----------------------------------------+-------------+------------+------------+
| Europe | 830.7 | 765.5 | 8.5 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Asia Pacific, Latin | | | |
+----------------------------------------+-------------+------------+------------+
| America, Africa & | | | |
+----------------------------------------+-------------+------------+------------+
| Middle East and | | | |
+----------------------------------------+-------------+------------+------------+
| Central & Eastern | | | |
+----------------------------------------+-------------+------------+------------+
| Europe | 905.8 | 930.4 | -2.6 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Total Group | 3,293.5 | 3,245.2 | 1.5 |
+----------------------------------------+-------------+------------+------------+
+----------------------------------------+-------------+------------+------------+
| Communications | Revenue | Revenue | Revenue |
+----------------------------------------+-------------+------------+------------+
| Services | 2009 | 2008 | Growth |
+----------------------------------------+-------------+------------+------------+
| Sector | $m | $m | Reported |
+----------------------------------------+-------------+------------+------------+
| | | | 09/08 |
+----------------------------------------+-------------+------------+------------+
| | | | % |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Advertising & Media | | | |
+----------------------------------------+-------------+------------+------------+
| Investment | | | |
+----------------------------------------+-------------+------------+------------+
| Management | 1,256.0 | 1,482.0 | -15.2 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Consumer Insight | 868.8 | 465.8 | 86.5 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Public Relations & | | | |
+----------------------------------------+-------------+------------+------------+
| Public Affairs | 310.2 | 347.7 | -10.8 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Branding & Identity, | | | |
+----------------------------------------+-------------+------------+------------+
| Healthcare and | | | |
+----------------------------------------+-------------+------------+------------+
| Specialist | | | |
+----------------------------------------+-------------+------------+------------+
| Communications | 858.5 | 949.7 | -9.6 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Total Group | 3,293.5 | 3,245.2 | 1.5 |
+----------------------------------------+-------------+------------+------------+
Appendix 4: Revenue and revenue growth by region and communications services
sector in Reportable US Dollars
9 months ended 30 September 2009
+----------------------------------------+-------------+------------+------------+
| | Revenue | Revenue | Revenue |
+----------------------------------------+-------------+------------+------------+
| | 2009 | 2008 | Growth |
+----------------------------------------+-------------+------------+------------+
| Region | $m | $m | Reported |
+----------------------------------------+-------------+------------+------------+
| | | | 09/08 |
+----------------------------------------+-------------+------------+------------+
| | | | % |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| North America | 3,454.6 | 3,476.1 | -0.6 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| United Kingdom | 1,161.3 | 1,312.2 | -11.5 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Western Continental | | | |
+----------------------------------------+-------------+------------+------------+
| Europe | 2,520.9 | 2,409.4 | 4.6 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Asia Pacific, Latin | | | |
+----------------------------------------+-------------+------------+------------+
| America, Africa & | | | |
+----------------------------------------+-------------+------------+------------+
| Middle East and | | | |
+----------------------------------------+-------------+------------+------------+
| Central & Eastern | | | |
+----------------------------------------+-------------+------------+------------+
| Europe | 2,559.3 | 2,642.2 | -3.1 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Total Group | 9,696.1 | 9,839.9 | -1.5 |
+----------------------------------------+-------------+------------+------------+
+----------------------------------------+-------------+------------+------------+
| Communications | Revenue | Revenue | Revenue |
+----------------------------------------+-------------+------------+------------+
| Services | 2009 | 2008 | Growth |
+----------------------------------------+-------------+------------+------------+
| Sector | $m | $m | Reported |
+----------------------------------------+-------------+------------+------------+
| | | | 09/08 |
+----------------------------------------+-------------+------------+------------+
| | | | % |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Advertising & Media | | | |
+----------------------------------------+-------------+------------+------------+
| Investment | | | |
+----------------------------------------+-------------+------------+------------+
| Management | 3,709.5 | 4,486.6 | -17.3 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Consumer Insight | 2,547.9 | 1,426.6 | 78.6 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Public Relations & | | | |
+----------------------------------------+-------------+------------+------------+
| Public Affairs | 912.0 | 1,050.8 | -13.2 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Branding & Identity, | | | |
+----------------------------------------+-------------+------------+------------+
| Healthcare and | | | |
+----------------------------------------+-------------+------------+------------+
| Specialist | | | |
+----------------------------------------+-------------+------------+------------+
| Communications | 2,526.7 | 2,875.9 | -12.1 |
+----------------------------------------+-------------+------------+------------+
| | | | |
+----------------------------------------+-------------+------------+------------+
| Total Group | 9,696.1 | 9,839.9 | -1.5 |
+----------------------------------------+-------------+------------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFEDEEUSUSEES
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