Solid US trading boosts advertising group WPP

Britain's WPP, the world's biggest advertising company, reported first-quarter like-for-like net sales growth in line with forecasts and ahead of last year, driven by an acceleration of new contract wins in the United States.

WPP, which handles the advertising for brands such as Ford and Unilever, said its key sales measurement rose by 3.2 per cent, putting it on track for its full-year target of more than 3 per cent growth.

The solid update from WPP echoed similar performances from its rivals, Omnicom, Publicis and Interpublic which have all reported solid trading due to buoyant demand in North America.

WPP, led by the high profile businessman Martin Sorrell, attributed the solid start to the year to a strong performance in North America where a raft of major advertising contracts have come up for review. It also traded well in Britain and the big markets of Europe.

It secured net new business of $1.8 billion in the first quarter, compared with the $1 billion it signed in the first three months of the previous year, helping it to top net new business league tables.

WPP said clients generally remained cautious due to the uncertain global outlook but that the major events of 2016 such as the Olympic Games, the European soccer tournament and the US Presidential election would help it through the year.