The company said underlying revenue trends were sound, with early indications showing that July revenues were up almost 9 per cent at constant currencies compared to the group's 11.4 per cent rise in the first half. "Prospects for the latter half of 1999 look similar to the first half, and projections for advertising market growth in 2000 look better than 1999 in the range of 5 to 6 per cent," WPP said in its earnings statement.

The company said it was on track to achieve its margin target of 13.4 per cent this year and 14 per cent in 2000, while it is alsocontinuing to look at ways of using its cash flow of more than 200 million pounds a year to boost its shareholder value.

The company said it was setting up a parent company for its new media operations called wpp.com to coordinate its activities in the new technology sector across its operating brands.

Internet guru Esther Dyson will be wpp.com's non-executive chairman, and Eric Salama, WPP's strategy director would be its chief executive. British newspapers reported over the weekend that WPP was planning a new incentive scheme for bosses led by chief executive Martin Sorrell which could eventually be worth up to $100 million, but the company's statement did not give details. The company's revenues from North America--which accounts for 44 per cent of the group's business--rose 15.4 per cent in the first half at constant currencies, followed by 13.2 per cent growth in the UK and 12.2 in continental Europe. However, revenues from the Asia Pacific, Latin America, Africa and Middle East continued to lag,slipping 1.6 per cent as economic crises continued to bite.