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Segmental analysis (Tables)
 6 Months Ended
Jun. 30, 2019
Text block [abstract]  
Contributions by Reportable Segments

In assessing the Group’s reportable segments, the Directors have considered the similar economic characteristics of certain operating segments, their shared client base and the similar nature of their products or services, amongst other factors. As a result, the Group’s reportable segments have changed, and comparatives have been restated as follows:

 

      Six months
ended
30 June
2019		     

Restated

Six months
ended
30 June
2018

     

Restated

Year

ended
31 December
2018

  
      £m      £m      £m  

Revenue

         

Global Integrated Agencies1

      4,873.6        4,755.5        9,930.7  

Data Investment Management2

      1,247.5        1,225.8        2,560.9  

Public Relations3

      471.5        454.0        931.7  

Specialist Agencies4

      1,023.4        1,057.4        2,179.1  
       7,616.0        7,492.7        15,602.4  

Revenue less pass-through costs5

         

Global Integrated Agencies1

      3,858.1        3,844.2        8,070.8  

Data Investment Management2

      949.2        940.1        1,953.3  

Public Relations3

      442.2        430.0        879.9  

Specialist Agencies4

      899.4        934.6        1,922.6  

Headline operating profit6

         

Global Integrated Agencies1

      471.2        484.8        1,239.5  

Data Investment Management2

      101.2        110.4        296.3  

Public Relations3

      69.6        69.0        140.6  

Specialist Agencies4

      87.6        118.7        285.7  
       729.6        782.9        1,962.1  

Headline operating profit margin7

      %        %        %  

Global Integrated Agencies1

      12.2        12.6        15.4  

Data Investment Management2

      10.7        11.7        15.2  

Public Relations3

      15.7        16.0        16.0  

Specialist Agencies4

      9.7        12.7        14.9  

Notes

1 

Global Integrated Agencies includes all of Grey, GroupM, Hogarth, Ogilvy, VMLY&R & Wunderman Thompson.
2 

Data Investment Management represents Kantar, which has been classified as a disposal group subsequent to the period ended 30 June 2019.
3 

Public Relations represents the Group’s specialists in this area and remains as previously reported but excludes Ogilvy PR which now sits within Global Integrated Agencies as part of Ogilvy.
4 

Specialist Agencies represent the Group’s other agencies that specialise in certain areas, whether by region or range of services.
5

Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 4 for more details of the pass-through costs.
6

A reconciliation from operating profit to headline operating profit is provided in note 22.
7 

Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs.

 
Contributions by Geographical Area

Reported contributions by geographical area were as follows:

 

      Six months
ended
30 June
2019		      Six months
ended
30 June
2018 		    

Year

ended
31 December
2018

 
      £m      £m      £m  

Revenue

         

North America1

      2,592.3        2,598.1        5,371.0  

United Kingdom

      1,103.8        1,091.5        2,189.4  

Western Continental Europe

      1,625.0        1,609.9        3,335.3  

Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

      2,294.9        2,193.2        4,706.7  
       7,616.0        7,492.7        15,602.4  

Revenue less pass-through costs2

         

North America1

      2,156.6        2,155.2        4,474.2  

United Kingdom

      831.2        832.9        1,691.3  

Western Continental Europe

      1,305.9        1,319.2        2,735.4  

Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

      1,855.2        1,841.6        3,925.7  

Headline operating profit3

         

North America1

      301.1        341.6        788.7  

United Kingdom

      106.7        107.3        236.8  

Western Continental Europe

      118.6        122.1        346.9  

Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

      203.2        211.9        589.7  
       729.6        782.9        1,962.1  

Headline operating profit margin4

      %        %        %  

North America

      14.0        15.9        17.6  

United Kingdom

      12.8        12.9        14.0  

Western Continental Europe

      9.1        9.3        12.7  

Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

      11.0        11.5        15.0  

Notes

1 

North America includes the US with revenue of £2,452.5 million (period ended 30 June 2018: £2,454.1 million; year ended 31 December 2018: £5,074.1 million), revenue less pass-through costs of £2,041.3 million (period ended 30 June 2018: £2,038.6 million; year ended 31 December 2018: £4,236.7 million) and headline operating profit of £283.5 million (period ended 30 June 2018: £323.1 million; year ended 31 December 2018: £747.8 million).
2 

Revenue less pass-through costs is revenue less media, data collection and other pass-through costs. Pass-through costs comprise fees paid to external suppliers where they are engaged to perform part or all of a specific project and are charged directly to clients, predominantly media and data collection costs. See note 4 for more details of the pass-through costs.
3

A reconciliation from operating profit to headline operating profit is provided in note 22.
4 

Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs.