WPP confident on rising revenues

WPP chief Sir Martin Sorrell has seen revenues grow

The world's second-biggest advertising agency, WPP, has seen a "significant" rise in income for the year to May, with like-for-like revenues up 6%.

The UK-based firm said total worldwide revenues were up 20%, helped by the recent purchase of US firm Grey Global.

Latin America is the fastest-growing region, while strong revenue growth in Eastern Europe and Russia contrasts with slower growth in Western Europe.

WPP's figures are usually seen as a key indicator for the ad industry's health.

Growth continues

"2005 has seen further significant growth in revenue, profit and margins following the strong performance in 2004," WPP said in a trading statement released to coincide with the firm's annual general meeting on Monday.

"The company continues to make significant progress in winning major new business assignments," it added.

WPP, which owns agencies JWT and Ogilvy & Mather, saw its US revenues rise by more than 22% while its UK revenues were up 14%.

Revenues in continental Europe rose by more than 21% while revenues in Asia Pacific, Latin America, Africa and the Middle East were up by almost 25%.

Brand advertising, public relations and public affairs continued to show growth, WPP said, with media investment management showing the strongest growth.

Direct, internet and interactive-related activities account for about 15% of the group's revenues.

WPP's group revenues are currently forecast to total about $10bn (£5.4bn) in 2005.

WPP has about 84,000 staff in 1,400 offices around the world.