Last checked at 
(Adds quotes, background, reaction)
LONDON, April 25 (Reuters) - WPP, the world'slargest advertising group, reported a much better than expected7 percent rise in first quarter like-for-like revenue growth andsaid it had seen a surge in new client wins due to changes inthe industry.
Martin Sorrell's group, which shocked the market in Februarywhen it lowered its 2014 profit guidance due to fiercecompetition, said it had enjoyed strong trading in North Americaand Britain and from its advertising and digital mediadivisions.
Profits, revenue margin and gross margin were all abovebudget, it said, and it reiterated its margin targets for thefull-year.
The bullish trading update follows similarly upbeatstatements from rivals Publicis and Omnicom,which are in the process of merging to overtake the Britishgroup as the world's largest ad firm, and IPG.
WPP has consistently won new clients from rivals since thetwo firms announced their intention to merge in July last yearas the planned combination has resulted in conflicts ofinterests among their client bases.
WPP's net new business billings were up 57 percent in 2013and they have won big clients in 2014, including Vodafone and Marks & Spencer.
As the last big agency to report, the 7 percent organicgrowth puts WPP at the top of the pile.
France's Publicis reported revenue growth on a comparablebasis of 3.3 percent, helped by strong digital sales and anuptick in China and Europe. Omnicom posted sales on the samebasis up 4.3 percent and IPG was up 6.6 percent, with the lattertwo benefiting from strong demand in their home U.S. market.
"In terms of the global ad agencies, first quarter growthdemonstrated the expected acceleration and WPP led the pack; forus the discount to the global agency groups continues not tomake too much sense," Jefferies said in a note to clients.
The only negative comments in the WPP statement resultedfrom the as-expected hit from the strong pound, with foreignexchange rates taking an 8.1 percent hit on revenues at thereported level.
The group also noted that its market research business hadslowed in mainland China. (Reporting by Kate Holton, Editing by Paul Sandle)
