Advertising firm WPP sees profits rise

British advertising company WPP Group said today first-half profits climbed nearly 16 per cent as growth in Asia and the United…

British advertising company WPP Group said today first-half profits climbed nearly 16 per cent as growth in Asia and the United States counterbalanced sluggish European markets.

Chief executive Mr Martin Sorrell said his company,  the world's second-largest advertising firm,  is still conducting due diligence on Grey Global as it considers making a bid for the third-largest US advertising company.

WPP's shares dipped 2.3 per cent to 483 pence. Dealers said a combination of uncertainty about a possible takeover of Grey and cautious comments about weakness in the US economy weighed on the stock.

"People are worried about Grey. There's no reason to hold the shares until that is sorted out," said a dealer.

READ MORE

WPP - whose agencies include Young & Rubicam, Ogilvy & Mather and J Walter Thompson - said pre-tax profit excluding goodwill and other items for the six months to June 30th was £234.7 million. Revenue climbed 6 per cent to £2.03 billion.