UPDATE 3-Publicis Q1 sales rise, eyes good growth for year

(Adds CEO comments on bond to analysts, updates shares)

By Dominique Vidalon

PARIS, April 29 (Reuters) - French advertising company Publicis Groupe (PUBP.PA: Quote, Profile, Research) beat forecasts with a 5.4 percent rise in first-quarter underlying revenue on Tuesday and said it expected further growth in the year ahead.

With net new business of $1.9 billion, the world's fourth largest advertising group forecast "good" revenue growth in 2008, led by the digital and media businesses and emerging markets and a recovery in health communications.

"I am confident but at the same time realistic. We are in an economic climate that calls for some caution ... There are many very positive signs," Chairman and Chief Executive Maurice Levy told a conference call.

Publicis shares gained 4.14 percent at 26.18 euros in mid-morning trade, outperforming the European media sector .

Levy, who predicted the second quarter would show improved underlying growth compared with the second quarter of 2007, did not give detailed guidance for the year.

"All I can say is that we should be among the best of the class this year," he said.

Publicis, which expects 2008 to be boosted by the Beijing Olympics, has not seen any signs yet that its clients were changing their advertising plans amid intense international attention over the human rights situation in China.