Martin Sorrell: The bath-shaped recession is over

The firm, which owns ad agencies Young & Rubicam and J Walter Thompson, said profits rose 18% to �473.4m ($881m).

WPP chief executive Sir Martin Sorrell, who famously described the ad industry as being in a "bath-shaped recession", said the slump was now over.

He said an upturn in the world economy had helped the firm beat forecasts.

And events such as the Olympics and the US elections were likely to boost revenues in 2004.

Time for a shower?

Last autumn, Sir Martin said the ad industry was "starting to climb out of the bath" and now it appears the process is complete.

"We're out of the bath," he told BBC Radio 4's Today programme.

"I think the key issue is whether we get a shower in 2005," he added.

"The key thing that's worrying a lot of people is what happens after the first Tuesday in November when the US presidential election takes place.

"Will the re-elected President Bush or a newly-elected president have to deal with government spending, a deficit, a weak dollar and perhaps some inflation."

Sporting chance

WPP said the past year's financial performance had been lifted by the continuing improvement in the world economy, although it noted that Europe - and especially the UK, remained weak.

Although 2003 was "not easy", it said, there were several events in the coming year which should push advertising rates higher.

"The positive impact of quadrennial factors such as the United States presidential election... the Athens Olympics and the European Football Championships should ensure further signs of a more significant recovery."

Despite WPP's upbeat results and outlook, shares in the firm were down 22.5 pence, or 3.6%, at 608p in afternoon trade.