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WPP said increased global advertising had seen its revenues for the first quarter of 2004 rise by 6% on the same time last year to �960.3m ($1.7bn).

Pearson said current advertising at the Financial Times (FT) was now level with last year, and forward bookings ahead.

It added however that advertising revenue at the FT was still volatile.

WPP, which runs advertising campaigns for a number of global brands, said it has sealed large contracts with a number of new and existing clients as optimism continues to return to the corporate world.

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All of WPP's operational regions except continental Europe grew revenues by more than 10% in the first three months of 2004, with the UK, where revenues rose 12%, ahead.

WPP, which last year took over UK rival Cordiant, expects advertising and marketing spending to rise by at least 3% in 2004, boosted by the Euro 2004 football tournament, the Athens Olympics and the US presidential election.

Its subsidiary firms include Ogilvy & Mather and J Walter Thompson.

Pearson, which also owns Penguin books, said its businesses were trading in line with expectations and that it expects to see a significant increase in progress this year.

While the overall advertising trend at the FT was upwards, it said revenues currently remain vulnerable on a week to week basis.

"Looking further ahead, the trading prospects for Pearson are better than at any time in the past three years," said Pearson chairman Dennis Stevenson.

Since 2000 Pearson has reduced costs at the FT by �100m.