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Sunday, 26 March 2006    
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Grey makes strong contribution to Group results

The Board of WPP Group plc unveiled the unaudited preliminary results for the year ended December 31, 2005, the Group's twentieth year.

These record results reflect the continued steady strength of the world economy positively impacting almost all disciplines and geographies and in addition, include the results of Grey Global Group from March 7, 2005, which has performed particulary well and made a strong contribution to the Group's results. Billings were up over 36% at œ 26.674 billion.

In constant currencies, advertising and media investment management revenue grew by almost 29%. Like-for-like (excluding currency fluctuations and acquisitions) Revenue growth was well over 4%. The combined operating margin of this sector was over 15%.

In 2005, Ogilvy and Mather Worldwide generated estimated net new billings of œ 87 million ($161 million), JWT œ 117 million ($216 million), Y&R Advertising œ 152 million ($280 million) and Grey Worldwide œ 398 million ($735 million).

In 2005, MindShare, Mediaedge:cia and MediaCom generated estimated net new billings of œ 1.6 billion ($2.9 billion). Reportable revenue was up 25% to œ5.374 billion. Revenue including 100% of associates is estimated to total over œ 6.5 billion.

On a constant currency basis, revenue was up almost 23% and gross profit up almost 24%. Like-for-like revenues, excluding the impact of acquisitions and on a constant currency basis, were up 5.5%. Like-for-like revenues were up 6% in the first half of 2005 and up 5% in the second half, continuing the strong organic growth of almost 6% in the second half of 2004.

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