WPP shares slump despite revenues growth

Shares in UK-based media and advertising giant WPP were shunned today despite confirmation of another strong quarter of trading from the group.

WPP, which owns agencies including Ogilvy & Mather and Hill & Knowlton, said revenues for the first three months of the year were almost 5% higher on a like-for-like basis – ahead of its previous “prudent” forecast of 4% for the whole of 2006 but down on the 5.5% reported for January.

The performance of WPP continued to impress market analysts, but signs of the slight revenues downturn were enough to prompt selling in its shares today. The blue-chip stock fell by 2%, although WPP was still near to four-year highs.

WPP said its performance reflected the continued strength of the US economy and the generally positive trading environment.

It added the UK remained its slowest growing trading region, with total revenues growth of 9% compared with 19% in continental Europe, 17% in North American and 26% in the rest of the world.