Ad giant WPP sees profits up on Olympics, US vote

Global advertising giant WPP said on Friday that the Beijing Olympic Games and the US presidential elections would boost its fortunes this year as it unveiled a 14.5-percent jump in first-half net profit.

However, the firm added that the outlook for 2009 was "less certain" amid slowing global economic growth, high commodity prices and concerns over growing inflationary pressures.

"Spending behind the United States Presidential Election and around the Beijing Olympic Games should continue to boost 2008 revenues," WPP said in comments accompanying an interim results statement.

It added that "levels of activity in 2008 should match those seen in 2007 and there are significant new business opportunities."

Net profits climbed 14.5 percent to 208.2 million pounds in the six months to the end of June, compared with the equivalent period of last year.

The world's second biggest advertising group said revenues advanced by 14.3 percent to stand at 3.339 billion pounds during the first half. Pre-tax profit rose 15.1 percent to 338.5 million pounds.

Looking beyond 2008, the group gave a downbeat assessment but said it would weather any global slowdown.

"The prospects for 2009 remain less certain, particularly if the United States and Western European economies continue to be impacted by the financial crisis and commodity price increases," WPP said.

"In addition, the new United States President will have to wrestle with twin fiscal and budget deficits in early 2009 and, post the Olympics, Chinese growth may slow due to inflationary particularly food price concerns and the impact that a weakening United States economy has on the rest of the world."

WPP, which stands behind only US titan Omnicom in the advertising sector, added that its tight grip on staff costs would "position the group very well to weather any economic slowdown."

The company concluded: "Despite these shorter-term uncertainties, the prospects for trading performance improvements at WPP remain good."









Children play on top of rocky desert cliffs at sunset. AP Photo/Hasan Jamali