Advertising group WPP was hit by the weak dollar in the first three months of the year, reporting a 0.7% decline in revenues to £1.37bn.
Revenues in the US fell 5.1% to £531.6m over a period that has seen the dollar fall 11% against sterling, culminating in the pound breaching the $2 mark and hitting a 26-year high this week.
However, things were better for WPP when the quarterly results are examined on an underlying basis, stripping out the effect of currency fluctuations and acquisitions.
The group, home to the J Walter Thompson and Ogilvy & Mather agencies, reported a 4.3% rise in underlying revenues, in line with its aim to outstrip industry growth of 4.5% this year.
In north America, where the company makes 40% of its revenues, the underlying figures showed 6% growth.
The WPP chief executive, Sir Martin Sorrell, said the "softness" in the US had been offset by the relative strength of the UK and continental Europe, which between them account for 40% of revenues.
The UK was the group's slowest growing region, but revenues were up more than 2%, reflecting the significance of market research revenues, WPP said.
Asia Pacific, Latin America, Africa and the Middle East continue to be the fastest growing region for the company, with revenues up almost 12% across those sectors in the first quarter.
Sir Martin said the company was looking forward to 2008, with the double-whammy of the US presidential elections and the Beijing Olympics expected to drive growth.
He said the premature start to the US campaign and the fact that next year's race looked like being a tight battle between a wide field would only boost advertising.
Further ahead, he predicted the 2012 London Olympics would have a positive effect on advertising.
"Sadly it seems to be the focus of a lot of political attention and debate but as we get closer people will get more positive," he said.
Sir Martin also hailed this week's acquisition of 49.9% stake in London-based marketing services group Clemmow Hornby Inge.
"They're a very good agency but they didn't want to sell control. So it'll be a permanent partnership, they'll keep a half and we'll help them with the other half," he said.
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