WPP plc Q2 2009 Earnings Call TranscriptAug. 26, 2009
Tue, Aug. 26, 7:11 AM
Fri, May. 9, 3:20 AM
- As expected, advertising giants Omnicom (OMC) and Publicis (PUBGY) have called off their $35B merger, citing "difficulties in completing the transaction within a reasonable time frame."
- Numerous problems had beset the "merger of equals," including obtaining tax and other regulatory approvals, differences over which executives would take leading positions - particularly the job of CFO - and which company would be listed as the legal acquirer of the other.
- No termination fees are being paid by either side.
- The ending of the merger leaves WPP (WPPGF) as the world's largest advertising company.
Fri, Apr. 25, 5:12 PM
- Personal battles over position and power are threatening the planned merger of equals by ad firms Omnicom (OMC) and Publicis (PUBGY), as sources say frayed personal relationships - in addition to legal and tax issues in Europe - are delaying the completion of the deal, first announced last summer.
- Among various conflicts, the two sides haven't yet agreed on which company will be the legal acquirer of the other, and they disagree over who will fill the CFO position and other senior jobs.
- In recent days, the companies have been sending starkly different messages about the status of the merger - to the extent that the CEO of rival WPP (WPPGY) says the deal is doomed.
Fri, Apr. 25, 3:11 AM
- WPP's (WPPGY) Q1 revenues rose 1.5% to £2.57B and comparable revenue increased a better than expected 7% despite a slowdown in China.
- The strong pound hurt WPP's performance by 8.1%
- Profits, revenue margin and gross margin or net sales margin were above budget.
- WPP, which is the world's largest advertising company, said its Q1 performance could lead to stronger FY growth than initially planned.
- Shares are +0.55% in London. (PR)
Oct. 24, 2013, 3:16 AM
- WPP's (WPPGY) organic (comparable) sales +5% in Q3, above +2.4% in H1 and consensus of +3.8%.
- Reported revenues +7.4% to £2.68B.
- Nine-month organic growth 3.3%; expects Q4 to show similar rate of expansion.
- WPP attributed the increased growth rate to an easier comparison from last year, as well as to improvements in the U.K. and the Americas.
- U.K. +8.1%, Western continental Europe +2.6 and North America +4.6%. (PR)
Aug. 29, 2013, 2:50 AM
- WPP (WPPGY) H1 pretax profit +12% to £524M.
- Revenue +7.1% to £5.33B, slightly above forecasts.
- July comparable revenue +5%.
- To accelerate small- and medium-sized acquisitions over the next three-to-four years.
- Dividend +20% to 10.56 pence a share; pay-out ratio 37% vs 34% last year
- Targeted dividend pay-out ratio lifted to 45% within two years from current 40%. (PR)
Jul. 29, 2013, 2:26 AM
- With about 22% of global ad spending digital and growing, the deal is aimed regaining some of the power back from Silicon Valley giants such as Google (GOOG) and Facebook (FB).
- Omnicom (OMC) and Publicis (PGPEF.PK) hope to be able to use their scale to optimize the use of data-driven analysis and the automated trading of ad space.
- Deal will need antitrust clearance in around 45 countries, but Omnicom CEO John Wren is confident the companies will receive it.
- WPP (WPPGY) CEO Martin Sorrel: "It's an extremely bold, brave and surprising move," he says. "Further consolidation of our industry is inevitable." (previous)
- Havas (HAVSF.PK) CEO David Jones: "The deal is "an industrial merger in the digital age," he says. "Clients today want us to be faster, more agile, more nimble and more entrepreneurial — not bigger and more bureaucratic and more complex."
Jul. 29, 2013, 2:00 AM
- Omnicom Group (OMC) and Publicis Groupe (PGPEF.PK) have confirmed that they have agreed to a 50:50 merger.
- Deal will create the world's largest advertising firm with a stock market value of $35.1B and which had combined 2012 revenues of $22.7B, well above WPP's (WPPGY) $16B.
- The new firm will also have over 130,000 workers.
- Omnicom's John Wren, based in New York, and Publicis' Maurice Levy, based in Paris, will be co-CEOs for 30 months, after which Wren will become sole CEO and Levy will become nonexecutive Chairman.
- Clients include Omnicom's AT&T, Visa and Pepsi, and Publicis' McDonald’s, Coca-Cola and Walmart . (PR)
Mar. 1, 2013, 4:03 AMWPP (WPPGY): 2012 net profit -2.1% to £822.7M; adjusted EBIT +7% to £1.53B, meeting expectations. Revenue +3.5% to £10.37B, slightly above consensus. Organic revenue +2.9% to GBP10.37B, and targeting 3% growth for this year. 2012 Operating margin +0.5 percentage point to 14.8%. Warns of cautious ad spending this year, although Europe showed improvement in Q4. Increases dividend by 16% to 28.51 pence a share. Shares +1.5% in London. (PR) | Comment!
Aug. 30, 2012, 3:20 AMWPP (WPPGY): H1 net profit +20% to £277.8M, revenues +5.5% to £4.97B. Adjusted op profit +10% to £570M vs. consensus £575M. Comparable revenue +3.6% vs. +3.9%. Cuts 2012 revenue forecast to "close to 3.5%" from over 4% previously, citing the eurozone crisis and slowing U.S. sales growth. Increases interim dividend 18% to 8.80 pence/share. Intends to return HQ to U.K. from Ireland. (PR) | Comment!
Jun. 20, 2012, 7:57 AM
Jun. 13, 2012, 9:42 AMIn addition to holding a shareholder vote on pay, WPP (WPPGY) also says it expects like-for-like revenue growth of over 4% in 2012, with a "slightly stronger second half." In the first four months, comparable sales rose 4% to £3.2B as the ad firm enjoyed growth across all its ops, albeit not at the same levels as last year. | Comment!
Jun. 13, 2012, 9:36 AM
May. 23, 2012, 9:45 AMMicrosoft (MSFT) and WPP (WPPGY) agree a 3-year deal that will allow them to place and sell online ads for the brands and Internet publishers they work. The aim is to better match the supply and demand of ad inventory, with Microsoft partners AOL and Yahoo (YHOO) also set to benefit, especially in gaining access to premium ads. | Comment!
Oct. 17, 2011, 3:22 PMWith fears of a global economic slowdown lingering, Wedbush comes out in defense of its bullish view on advertising agencies, reiterating its Outperform ratings on Interpublic Group (IPG -6.4%) and WPP Group (WPPGY -2.5%). The firm says its current forecast calls for an increase in global media and marketing spending growth in 2012, and notes that both firms are less vulnerable to an economic slowdown due to their worldwide exposure. | Comment!
Aug. 24, 2011, 4:33 AMIn its H1 earnings release, advertising giant WPP (WPPGY) trimmed its full-year growth outlook to 5.9% from a previous 6%+, but notes a "disconnect between the macro picture as defined by the stock markets, and the micro picture as defined by individual company results, which have continued to be generally better than expectations." | Comment!
WPPGY vs. ETF Alternatives
WPP PLC is a communications services organization offering national and multinational clients a comprehensive communications services. It operates in the UK, Central and Eastern Europe, the Middle East, Africa, Australia, US, and Asia.
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