British advertising giant WPP warned today that it is suffering from the US economic slowdown, but said revenues and operating margins were still growing.
WPP, the world's largest marketing services company, said sales grew six per cent, once the acquisition of US group Young and Rubicam had been factored in, to euro 1.5 billion euros in the first quarter of 2001.
But it warned that "organic revenue growth in the first quarter, to some extent reflects the sharp deceleration in the growth rate of the United States economy".
It said that slowdown had affected "public relations and public affairs, and branding and identity, healthcare and specialist communications the most, advertising and media investment management less so, and information and consultancy the least."
WPP shares were sharply lower after the results statement, falling 4.3 per cent to 752.5 pence.
AFP
