• by Paul Gough , May 2, 2004

Revenue growth was strong at WPP Group PLC, with revenues up 6 percent to $1.7 billion in the first quarter.

WPP showed stronger growth in its business units, including advertising, media planning and buying, health care, and specialty communications. Media planning and buying rose 14 percent throughout the company, and other units responsible for branding/identity, health care, and specialty communication rose 19 percent in the quarter. Public relations, which had been hit hard in the recession, has finally started to pick up, WPP said.

Net new business in the quarter totaled $926 million. Wins for the quarter included Safeway and Coca-Cola for Berlin Cameron/Red Cell.

"There are an increasing number of new business opportunities, as clients turn their attention to managing for growth and the top line, rather than focusing totally on costs," WPP said in a news release. "In addition, there are signs that corporate capital expenditures (particularly in technology) are picking up, possibly filling any potential vacuum in consumer spending."

WPP isn't the only agency holding company to report better results. Last week, two other holding companies reported. The world's largest-- Omnicom, which owns media shops OMD and PhD--reported a 15.2 percent rise in first-quarter revenues to $2.23 billion. It was the first time in three years that each part of Omnicom's business--even public relations, a sore spot during the recession--had been in positive territory. Media services were up 13 percent in the quarter compared to the same three months in 2003.

Paris-based Havas sprang back to life in the first quarter, thanks to the performance of media planning/buying group MPG. Havas' U.S. revenues fell 3.4 percent in the quarter because of Euro RSVG, but MPG had big gains from the global media buying assignment for Air France and new business wins.

Later this week, the advertising industry will get its latest look at the recovery of Interpublic Group of Cos., which owns Initiative Media and MAGNA Global USA. It will report its quarterly results on Friday.