WPP WPP PLC

By Nick Kostov 

PARIS-- WPP PLC said on Thursday it is in the process of reviewing its forecasts as it reported a rise in first-quarter revenue in sterling terms, boosted by strong growth across key markets including North America, the U.K. and Western continental Europe.

The world's largest advertising agency added that, based on early indications, it is ahead of targets to post like-for-like revenue growth of well over 3% and net sales growth of over 3%, with a stronger second half to come.

WPP, which owns agencies such as Ogilvy & Mather and Grey, said revenue rose 11% to GBP3.08 billion ($4.5 billion) in the three months to end-March. Net new business was $1.78 billion in the first quarter, compared with $1 billion in the same period last year.

In the first quarter, comparable net sales--a closely tracked revenue measure which strips out costs linked to acquiring digital media space and currency swings, acquisitions and disposals--rose 3.2% in sterling terms.

The world's largest ad firms have all reported improving sales growth for the latest quarter, driven by the U.S., the world's largest ad market, but also a return to growth in Europe. A recent forecast from Publicis-owned ZenithOptimedia projects global ad spending growth of 4.6% this year, pointing to a healthy advertising market overall.

WPP's Chief Executive Martin Sorrell--known for his colorful economic predictions--has warned though that a "cocktail of difficult trends" means companies remain focused on cutting costs in a fragile economic and geopolitical environment, even as the company posted an increase in profit and sales last year.

The slowdown in previously fast-growing economies like Russia and Brazil, political instability in the Middle East and Africa and the uncertainty surrounding Britain's membership of the EU are among his chief concerns for clients, Mr. Sorrell said.

"Caution, understandably, prevails," he added.

Write to Nick Kostov at Nick.Kostov@wsj.com

(END) Dow Jones Newswires

April 28, 2016 05:06 ET (09:06 GMT)

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