WPP has stuck by hopes for a market recovery in 2004 as it reported lower revenues and profits in the first half of this year.
The advertising group - which includes American Express, Ford, IBM and Unilever among its clients - said its performance mirrored more stable conditions in the United States but continued trading pressure in Britain.
Revenues during the six months to June 30th fell 2 per cent to £1.91 billion sterling - unchanged on a like-for-like basis - while profits before one-off exceptional items slipped almost 5 per cent to £202.9 million.
Pre-tax profits fell to £153.6 million from £173.7 million a year earlier, although the London-based company still increased its half-year dividend by 20 per cent to 2.08p a share.
Chief executive Sir Martin Sorrell, who completed the takeover of debt-laden British rival Cordiant earlier this month, said he remained confident that sporting and political events next year would stimulate demand.
The Athens Olympics and the European Football Championships are expected to boost WPP workloads.
Sir Martin stuck by hopes of meeting the company's margin target of 13.8 per cent in 2004, helped by evidence of a 2 per cent rise in like-for-like revenues in July.