Advertising and marketing group WPP said its growth slipped in the third quarter, reflecting weakness in the UK market and a slowdown in Eastern Europe, although like-for-like sales growth was still ahead by more than 4%.
The group, which owns JWT and Young & Rubicam, says it continues to gain market share.
Headed by Sir Martin Sorrell, WPP is the world's second-largest advertising firm and it remains confident for the full year, saying: "Prospects for improvements in trading performance remain good."
The rise in third-quarter revenues to £1.41bn failed to match expectations, and WPP shares fell 26.5p to 662.5p in early trading.
WPP remains on target to meet margin targets for this year and next, "despite continuing concerns among some commentators about the prospects of the United States economy, its twin deficits, the indebted consumer and the direction of interest rates and commodity prices, and their impact on inflation".
All markets performed well with the exception of Western Europe. In North America, revenues were up over 8%, with the UK up over 1% and Western Continental Europe up over 3%. Asia Pacific, Latin America, Africa and the Middle East continued to perform well, with revenues up almost 16%.
Strongest growth was seen in the communications services sector, public relations and public affairs, with sales up by almost 14%, followed by branding and identity, healthcare and specialist communications, up almost 12%. Information, insight and consultancy was up over 8%, and advertising and media investment management up over 4%.
Net new business billings of $2.6bn (£1.43bn) were won during the third quarter, taking net new business billings for the first nine months of 2006 to $5.5bn, an increase of almost 19%.
For the nine-month period, like-for-like growth was almost 5%. The group said: "Industry experts are still forecasting that advertising and marketing services will grow at 4% this year, which for the first nine months the Group has exceeded, therefore growing market share."
· Email fiona.walsh@theguardian.com
