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Segment information (Tables)
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Contributions by Reportable Segments
Reportable segments
Reported contributions were as follows:
 
Continuing operations
– Income statement
  
Revenue
1
 
  
Revenue
less
pass-through

costs
2
 
  
Headline
operating
profit
3
 
  
Headline
operating
profit
margin
4
 
 
  
£m
 
  
£m
 
  
£m
 
  
 
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Global Integrated Agencies
5
  
 
10,205.2
 
  
 
8,108.1
 
  
 
1,219.5
 
  
 
15.0%
 
Public Relations
6
  
 
956.5
 
  
 
898.0
 
  
 
140.6
 
  
 
15.7%
 
Specialist Agencies
7
  
 
2,072.4
 
  
 
1,840.4
 
  
 
200.5
 
  
 
10.9%
 
 
  
 
13,234.1
 
  
 
 
 
  
 
1,560.6
 
  
 
 
 
2018
8
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Global Integrated Agencies
5
  
 
9,930.7
 
  
 
8,070.8
 
  
 
1,228.2
 
  
 
15.2%
 
Public Relations
6
  
 
931.7
 
  
 
879.9
 
  
 
139.2
 
  
 
15.8%
 
Specialist Agencies
7
  
 
2,184.3
 
  
 
1,925.0
 
  
 
283.8
 
  
 
14.7%
 
 
  
 
13,046.7
 
  
 
 
 
  
 
1,651.2
 
  
 
 
 
2017
8
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Global Integrated Agencies
5
  
 
10,028.6
 
  
 
8,315.5
 
  
 
1,321.3
 
  
 
15.9%
 
Public Relations
6
  
 
915.0
 
  
 
864.3
 
  
 
123.5
 
  
 
14.3%
 
Specialist Agencies
7
  
 
2,202.8
 
  
 
1,964.3
 
  
 
348.3
 
  
 
17.7%
 
 
  
 
13,146.4
 
  
 
 
 
  
 
1,793.1
 
  
 
 
 
 
Notes
1
 
 
Intersegment sales have not been separately disclosed as they are not material.
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 changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs.
3
 
 
A reconciliation from operating profit to headline operating profit is provided in note 32.
4
 
 
Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs.
5
 
 
Global Integrated Agencies includes all of Grey, GroupM, Hogarth, Ogilvy, VMLY&R and Wunderman Thompson.
6
 
 
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.
7
 
 
Specialist Agencies represent the Group’s other agencies that specialise in certain areas, whether by region or range of services.
8
 
 
Prior year figures have been
re-presented
in accordance with IFRS 5
Non-
c
urrent
Assets Held for Sale and Discontinued Operations, as described in the accounting policies. As a result Data Investment Management is now excluded from the segment analysis.
 
Continuing operations – Other information
  
Share-based

payments
 
  
Capital
additions
1
 
  
Depreciation
and
amortisation
2
 
  
Goodwill
impairment
 
  
Share of
results of
associates
 
 
Interests in
associates and
joint ventures
 
 
  
£m
 
  
£m
 
  
£m
 
  
£m
 
  
£m
 
 
£m
 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Global Integrated Agencies
  
 
54.3
 
  
 
265.6
 
  
 
392.8
 
  
 
4.8
 
  
 
17.0
 
 
 
164.2
 
Public Relations
  
 
4.6
 
  
 
17.5
 
  
 
31.5
 
  
 
–
 
  
 
(0.3
) 
 
 
5.5
 
Specialist Agencies
3
  
 
7.1
 
  
 
46.7
 
  
 
84.0
 
  
 
42.9
 
  
 
(2.0
) 
 
 
643.3
 
 
  
 
66.0
 
  
 
329.8
 
  
 
508.3
 
  
 
47.7
 
  
 
14.7
 
 
 
813.0
 
2018
4
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Global Integrated Agencies
  
 
59.5
 
  
 
255.6
 
  
 
159.1
 
  
 
148.0
 
  
 
25.4
 
 
 
175.1
 
Public Relations
  
 
7.1
 
  
 
12.5
 
  
 
10.8
 
  
 
–
 
  
 
1.3
 
 
 
6.2
 
Specialist Agencies
3
  
 
11.7
 
  
 
45.9
 
  
 
39.4
 
  
 
35.9
 
  
 
3.8
 
 
 
615.5
 
 
  
 
78.3
 
  
 
314.0
 
  
 
209.3
 
  
 
183.9
 
  
 
30.5
 
 
 
796.8
 
2017
4
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Global Integrated Agencies
  
 
77.8
 
  
 
214.3
 
  
 
157.1
 
  
 
–
 
  
 
16.2
 
 
 
179.9
 
Public Relations
  
 
7.2
 
  
 
9.5
 
  
 
9.8
 
  
 
7.5
 
  
 
0.9
 
 
 
5.6
 
Specialist Agencies
3
  
 
13.3
 
  
 
47.2
 
  
 
42.2
 
  
 
19.6
 
  
 
80.9
 
 
 
879.7
 
 
  
 
98.3
 
  
 
271.0
 
  
 
209.1
 
  
 
27.1
 
  
 
98.0
 
 
 
1,065.2
 
 
Notes
1
 
 
Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software).
2
 
 
Depreciation of property, plant and equipment, depreciation of right-of-use assets and amortisation of other intangible assets.
3
 
 
Specialist Agencies includes the Kantar associate and amounts previously reported under the Data Investment Management segment.
4
 
 
Prior year figures have been re-presented in accordance with IFRS 5 Non-
c
urrent Assets Held for Sale and Discontinued Operations, as described in the accounting policies.
Contributions by Geographical Area
Contributions by geographical area were as follows:
 
 
 
Continuing operations
  
2019
£m
 
  
2018
1

£m
 
  
2017
1

£m
 
Revenue
2
  
 
 
 
  
 
 
 
  
 
 
 
North America
3
  
 
4,854.7
 
  
 
4,851.7
 
  
 
5,083.5
 
United Kingdom
  
 
1,797.1
 
  
 
1,785.6
 
  
 
1,737.4
 
Western Continental Europe
  
 
2,628.8
 
  
 
2,589.6
 
  
 
2,455.7
 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
  
 
3,953.5
 
  
 
3,819.8
 
  
 
3,869.8
 
 
  
 
13,234.1
 
  
 
13,046.7
 
  
 
13,146.4
 
Revenue less pass-through costs
4
  
 
 
 
  
 
 
 
  
 
 
 
North America
3
  
 
4,034.3
 
  
 
4,059.7
 
  
 
4,335.2
 
United Kingdom
  
 
1,390.1
 
  
 
1,393.8
 
  
 
1,390.0
 
Western Continental Europe
  
 
2,176.4
 
  
 
2,182.9
 
  
 
2,063.7
 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
  
 
3,245.7
 
  
 
3,239.3
 
  
 
3,355.0
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Headline operating profit
5
  
 
 
 
  
 
 
 
  
 
 
 
North America
3
  
 
662.0
 
  
 
710.6
 
  
 
816.3
 
United Kingdom
  
 
188.5
 
  
 
179.6
 
  
 
218.1
 
Western Continental Europe
  
 
261.5
 
  
 
289.4
 
  
 
249.8
 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
  
 
448.6
 
  
 
471.6
 
  
 
508.9
 
 
  
 
1,560.6
 
  
 
1,651.2
 
  
 
1,793.1
 
    
Headline operating profit margin
6
  
Margin
 
  
Margin
1
 
  
Margin
1
 
North America
  
 
16.4%
 
  
 
17.5%
 
  
 
18.8%
 
United Kingdom
  
 
13.6%
 
  
 
12.9%
 
  
 
15.7%
 
Western Continental Europe
  
 
12.0%
 
  
 
13.3%
 
  
 
12.1%
 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
  
 
13.8%
 
  
 
14.6%
 
  
 
15.2%
 
 
Notes
1
 
 
Prior year figures have been
re-presented
in accordance with IFRS 5
Non-
c
urrent
Assets Held for Sale and Discontinued Operations, as described in the accounting policies.
2
 
 
Intersegment sales have not been separately disclosed as they are not material.
3
 
 
North America includes the US with revenue of £4,576.5 million (2018: £4,576.1 million, 2017: £4,782.0 million), revenue less pass-through costs of £3,806.3 million (2018: £3,836.0 million, 2017: £4,089.9 million) and headline operating profit of £620.6 million (2018: £674.4 million, 2017: £773.5 million).
4
 
 
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 changed directly to clients, predominantly media and data collection costs. See note 3 to the consolidated financial statements for more details of the pass-through costs.
5
 
 
A reconciliation from operating profit to headline operating profit is provided in note 32
.
6
 
 
Headline operating profit margin is calculated as headline operating profit (defined above) as a percentage of revenue less pass-through costs.
 
 
   
Continuing operations
  
2019
£m
 
  
2018
£m
 
Non-current
assets
1
  
 
 
 
  
 
 
 
North America
2
  
 
6,833.1
 
  
 
7,269.7
 
United Kingdom
  
 
1,754.6
 
  
 
2,079.2
 
Western Continental Europe
  
 
3,429.8
 
  
 
4,385.6
 
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
  
 
3,681.4
 
  
 
4,028.4
 
 
  
 
15,698.9
 
  
 
17,762.9
 
 
Notes
1
 
 
Non-current
assets excluding financial instruments and deferred tax.
2
 
 
North America includes the U
nited
 
S
tates
 with
non-current
assets of £6,373.9 million (2018: £6,791.9 million).