WPP paints bright growth picture

ADVERTISING and media giant WPP today delivered a strong message of growth in the British and global economy.

Underlying revenues worldwide from the group, whose businesses include Ogilvy & Mather, JWT and Young & Rubicam, were up 6% for the first five months of trading this year, extending similar growth in its first quarter to the end of March.

Overall revenues in all regions showed double-digit growth led by the US, up 22%, continental Europe, up more than 21%, and the UK, up 14%-plus.

The strongest performing regions continue to be Asia, Latin America and the Middle East, where WPP's income rose almost 25% between January and the end of May.

Turnover worldwide was boosted by the acquisition of Grey Global media group, completed in March.

Chief executive Sir Martin Sorrell said the 2008 Olympics in Beijing were already lifting companies' advertising spending in China, which currently accounts for about 4% of WPP revenues.

WPP's trading update coincided with the firm's annual meeting, when owners of three out of eight of WPP's total shares abstained from voting on the re-election of remuneration committee chairman Stanley 'Bud' Morten to the board for another three years.

Morten has been on the board for 14 years, against the maximum nine recommended under best practice, and is a paid consultant to Citigroup, one of WPP's investment banks. Of those who voted, 92% were in favour of his re-election.