3rd Quarter Trading Update (Wpp)

Date : 10/30/2009 @ 3:00AM
Source : UK Regulatory (RNS and others)
Stock : Wpp (WPP)
Quote : 582.5  8.5 (1.48%) @ 11:29AM
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3rd Quarter Trading Update (Wpp)

 
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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