07 March 2017
WPP biggest in 2016, Interpublic is growing fastest
WPP reported record revenues in 2016 with £14.4bn ($20bn), an increase of 17.6 per cent from the previous year, and a record profit before tax of £2bn ($2.6bn), up 26.7 per cent. However, CEO Martin Sorrell warned of a slowdown in growth in 2017 due to political uncertainties and a slow start to the year, sending shares in the FTSE 100 group down 7.6 per cent on the morning of the earnings release.
On a like-for-like basis (organic) which excludes the impact of acquisitions and currency movements, net sales grew 3.1 per cent, slower than both IPG and Omnicom. Reported EBITDA (earnings before interest, tax, depreciation and amortization) grew to £2.4bn up 20.8 per cent from £2bn in 2015, or up eight per cent on a constant currency basis. WPP’s Advertising and Media Investment Management division enjoyed the highest organic net sales growth of the year, with 3.7 per cent growth. Data Investment Management was the poorest performing divisions, with just 0.9 per cent growth.
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