LONDON (AFP) - WPP, the British advertising and marketing group, reported a four percent rise in third-quarter revenues but gave a cautious outlook for 2005 amid concerns about the US economy.
WPP said revenues increased to 1.07 billion pounds (1.54 billion euros, 1.97 billion dollars), above analysts' forecasts. The group has booked 1.5 billion pounds of revenues in the fourth quarter.
The global advertising group headed by Sir Martin Sorrell said that if industry growth rates this year are three-four percent, next year they are likely to fall slightly to two-three percent.
"The jury remains out on 2005," WPP said.
"There are still concerns about the prospects for the United States economy after the presidential election, with its fiscal deficit, weak dollar and rising commodity prices, including oil, although the weakness in some of the major markets in Western Europe is ameliorating," the company added.
But any US slowdown may be tempered by continued growth in Asia Pacific, after a Chinese soft-landing and continued recovery in Western Europe and Latin America, it said.
WPP said excluding currency movements, third-quarter revenues were up almost 12 percent.
In North America, revenues were up over 10 percent in the third quarter, in Britain up 12 percent and in Continental Europe up almost seven percent.
Asia Pacific, Latin America, Africa and the Middle East performed strongest, with revenues up over 22 percent.
New business wins have started extremely strongly in the first month of the fourth quarter, WPP said.
Incremental billings, including media planning and buying assignments, of over 1.5 billion pounds have already been secured, with decisions awaited on a further 3.0 billion pounds of new business.
10/26/2004 - 10:18 GMT - AFP