In like-for-like terms, revenues rose 6% for the first quarter of the year, boosted by a 40% rise in the US to £443.9m. UK revenue was up by 17% to £184.4m, while continental Europe saw a rise of 26% to £291.5m.
Shares in the company rose slightly this morning on the news, up by 0.95% to 610.23p, a rise of 5.73p.
By communications services sector, advertising and media investment management was up over 17% outstripped by information, insight and consultancy, which was up 19%. It is this part of the business that includes such services as market research, which has been tipped for growth.
WPP said public relations and public affairs were up over 12% and branding and identity, healthcare and specialist communications were up almost 15%.
"This maintains the improvement in the organic growth rate of the last two quarters of 2004 and reflects the growing focus by clients on improving profitability through innovation and branding and top line growth, rather than by relying solely on cost cutting," WPP said.
The advertising group, headed by Sir Martin Sorrell, said that it had beaten its budgeted profit margin, and that full-year forecasts were in line with the target for 2004 of 14.3%, including Grey.
New billings for the quarter stood at £875m, including Volkswagen's $350m (£186m) US media account and Samsung, which appointed WPP to its $700m global advertising account after a drawn-out review process.
On the back of last year's growth in the advertising industry, WPP reported in the trading update today that headcount on a like-for-like basis was up 5.2% to 64,368, compared with the first quarter of 2004.
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