WPP Plc's profit attributable to owners jumped 29.7% on a reported basis to £1.82 billion in 2017 from £1.40 billion in the previous year, according to preliminary results.
Diluted earnings rose 31.9% to £1.42 per share in 2017 from £1.08 per share in the previous year, reflecting the benefit of an exceptional tax credit of £206 million.
Headline EBITDA for the advertising and public relations company came in at £2.53 billion in 2017 from £2.42 billion a year ago while headline diluted EPS was £1.20 during 2017, compared to £1.13 in 2016.
WPP's revenue for 2017 climbed 6.1% on a like-for-like basis to £15.27 billion from £14.39 billion in the prior year, led by strong growth in the U.K. Meanwhile, the advertising and media investment management sector was the strongest performing segment, generating £1.11 billion in revenue in 2017.
"2017 for us was not a pretty year, with flat like-for-like, top-line growth, and operating margins and operating profits also flat, or up marginally," WPP's CEO Martin Sorrell said. "The major factors influencing this performance were probably the long-term impact of technological disruption and more the short-term focus of zero-based budgeters, activist investors and private equity than, we believe, the suggested disintermediation of agencies by Google Inc. and Facebook Inc. or digital competition from consultants."
In 2018, the company expects revenue to remain flat on a like-for-like basis when compared to 2017.
"Marketers still need to cycle through zero-based budgeting exercises and efforts to apply enhanced contract scrutiny to their contracts," said Brian Wieser, a senior research analyst at Pivotal Research Group.
WPP's board proposed a 6.0% increase in the company's dividend for 2017 to 60.0 pence per share from 56.60 pence per share in 2016, payable July 9.
