WPP records 73% increase despite US slowdown

WPP, the world's largest advertising company, says its revenues grew by more than 73% over the first quarter of 2001, despite the US slowdown.

WPP, the world's largest advertising company, said its revenues grew by more than 73% over the first quarter of 2001, despite the US slowdown.

But the company is reviewing it costs as problems in the US move from the new economy to the old.

Over the first three months of 2001 WPP's revenues were £966.4m, compared to £558m in the same period last year. WPP says the growth is partly due to the acquisition of Young & Rubicam and the strength of the dollar and European currencies against sterling.

In the first quarter of 2001 the group completed acquisitions in advertising and media investment management in the US, UK, South Korea and Brazil.

Almost 3.8 million WPP shares were bought during the first quarter at an average price of £7.57 and total cost of more than £28m.

Average net debt rose to £470m, which includes debt from Young & Rubicam.

In a trading statement, WPP said the US economy declined sharply towards the end of 2000.

The statement adds: "The impact of this slowdown has primarily impacted the technology, media and telecommunications sectors of the economy, although there is some spill over into the old economy."

The slowdown has mainly affected North America, with a lesser impact on the UK and Europe and an even smaller impact on Asia Pacific and Latin America.

The company said: "As a result our operating companies continue to review their costs closely and make adjustments where necessary."